URL: https://moderngov.fareham.gov.uk/ieDecisionDetails.aspx?ID=2737

Decision Maker: Executive

Outcome: Recommendations Approved

Is Key Decision?: Yes

Is Callable In?: Yes

Purpose: The report seeks agreement from the Executive to recommend to Council the approval of the revised budget for the Housing Revenue Account for 2025/26, plus the base budgets, fees and charges and rent increases for 2026/27.   The Executive recommended, and the Council approved, in February 2025, the base budget and rent increase for 2025/26, for Housing Revenue Account (HRA) services.   The report sets out some revisions to the Housing Revenue Account revised budget for 2025/26 and proposes the base budget for 2026/27. The housing capital programme and financing for the years 2025/26 to 2029/30 is also included for information as this impacts on the revenue budget.  The report also proposes the increases in rents and fees and charges for 2026/27.   The report highlights the issues affecting the Housing Revenue Account.  In particular, it highlights the increased expenditure needed to maintain the Council’s housing stock in the next 2 years.  This will mean that we will not be able to continue with our dept repayment put aside in these years.  However surpluses that do arise will be considered for this purpose.   Council budgets are susceptible to change in the level of expenditure and income caused by factors inside and outside of the Council’s control. Scenario analysis has been carried out to indicate the effect on housing balances of changes in the level of expenditure and income.  This has been included to support the need to maintain a prudent level of reserves and a working balance.  

Content: The report seeks agreement from the Executive to recommend to Council the approval of the revised budget for the Housing Revenue Account for 2025/26, plus the base budgets, fees and charges and rent increases for 2026/27.   The Executive recommended, and the Council approved, in February 2025, the base budget and rent increase for 2025/26, for Housing Revenue Account (HRA) services.   The report sets out some revisions to the Housing Revenue Account revised budget for 2025/26 and proposes the base budget for 2026/27. The housing capital programme and financing for the years 2025/26 to 2029/30 is also included for information as this impacts on the revenue budget.  The report also proposes the increases in rents and fees and charges for 2026/27.   The report highlights the issues affecting the Housing Revenue Account.  In particular, it highlights the increased expenditure needed to maintain the Council’s housing stock in the next 2 years.  This will mean that we will not be able to continue with our dept repayment put aside in these years.  However surpluses that do arise will be considered for this purpose.   Council budgets are susceptible to change in the level of expenditure and income caused by factors inside and outside of the Council’s control. Scenario analysis has been carried out to indicate the effect on housing balances of changes in the level of expenditure and income.  This has been included to support the need to maintain a prudent level of reserves and a working balance.   RESOLVED that the Executive agrees and recommends to the meeting of the Council to be held on 20 February 2026 that:   (a)  rents be approved for Council Dwellings as set out in paragraph 40 with effect form 1 April 2026;   (b)  rents for Council garages be increased by 4.8% with effect from 1 April 2026;   (c)  the revised budget for 2025/26 be approved;   (d)  the base budget for 2026/27 be approved;   (e)  the Fees and Service Charges at confidential Appendix F be approved.

Date of Decision: February 2, 2026