URL: https://northumberland.moderngov.co.uk/ieDecisionDetails.aspx?ID=411

Decision Maker: Cabinet

Outcome:

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: The report presents to Cabinet, the updated Budget 2026-27, Medium Term Financial Plan 2026-30 and 30 year Business plan for the Housing Revenue Account.

Content: RESOLVED that:-   (a)      Cabinet approve the Housing Revenue Account 2026-27 budget as detailed within Appendix 1, which will reduce the balance on the HRA reserve from £21.996 million at 31 March 2026, to £14.021 million at 31 March 2027; and note the indicative budgets to 2029-30 which will reduce the balance of the HRA reserve to £13.909 million;   (b)      Cabinet note that from 1 April 2026, social housing rent will be increased by Consumer Price Index (CPI) plus 1.00% as per the previously agreed Rent Standard. The budget detailed in Appendix 1 assumes that rents will rise by CPI 3.80% plus 1.00% with recoverable service charges also rising by CPI plus 1.00% for the period 1 April 2026 to 31 March 2027;   (c)      Cabinet approve the increase of 4.80% for housing rents from 1 April 2026 in line with the Government rent standard;   (d)      Cabinet approve the increase of 4.80% for housing service charges from 1 April 2026;   (e )     Cabinet approve the Non-Recurrent Growth Item of £1.000 million to deal with the influx of queries and repairs relating to Damp and Mould following the introduction of Awaab’s Law in October 2025 (detailed in point 6.13);   (f)       Cabinet approve the Non-Recurrent Growth Item of £0.135 million for 2026-27 and 2027-28 for additional Council tax on void properties (detailed in point 6.13);   (g)      Cabinet approve the Non-Recurrent Growth Item of £0.145 million for 2026-27 and 2027-28 for additional consumable materials for electrical testing (detailed in point 6.13);   (h)      Cabinet approve the Non-Recurrent Growth Item of £0.052 million for 2026-27 and £0.053 million in 2027-28 for an Assistant Project Manager post to coordinate the Energy Company Obligation/Great British Insulation Scheme (ECO4/GBIS) delivery programme to lever in external funding to supply energy efficient measures to the HRA housing stock (detailed in point 6.13);   (i)       Cabinet approve the Non-Recurrent Growth Item of £1.400 million for Stock Condition Surveys to comply with The Regulator of Social Housing, to be completed by 31 March 2027 (detailed in point 6.13);   (j)       Cabinet approve the estimated pay inflationary increase for 2026-27 of 3.50%, pay increments and National minimum wage increase totalling £0.565 million (detailed in point 6.11);   (k)      Cabinet approve the Non-Pay Inflation Schedule for 2026-27 totalling £0.283 million (detailed in point 6.11); (l)       Cabinet approve the Recurrent Growth Item of £0.093 million to fund additional transport costs for the damp and mould and electrical testing teams (detailed in point 6.12);   (m)     Cabinet approve the expenditure plan relating to £26.539 million which has been set aside over the 4-year period 2026-27 to 2029-30 in the HRA Capital programme to invest in the Affordable Housing Investment Programme. Details are set out in Appendix 1;   (n)      Cabinet approve the expenditure plan relating to £52.461 million which has been set aside over the 4-year period 2026-27 to 2029-30 in the HRA Major Repairs Programme to invest in continued improvement to the HRA housing stock. Details are set out in Appendix 1; and   (o)      Cabinet note the indicative 30-year Housing Revenue Account business plan as detailed within Appendix 1.

Date of Decision: January 13, 2026