Agenda item

Housing Revenue Account and Capital Programme

Joint report of Chief Officer Housing and Property and Chief Officer Resources (Cabinet report published on 14.01.25). 

 

Cabinet report is attached. 

Minutes:

The Panel received a verbal report from Councillor Caroline Jackson, Leader and Cabinet Member with responsibility for Housing. 

 

The Panel had received a joint Cabinet report from the Chief Officer for Housing and Property and the Chief Officer Resources which had sought Cabinet decisions on Council Housing rent setting proposals and the consideration of HRA revenue and capital budget proposals.

 

The options, options analysis, including risk assessment and officer preferred option that had been for Cabinet to consider, were set out in the Cabinet report as follows:

 

The options with regards to rent setting are set out under section 4, the maximum permitted increase being CPI+1%. By applying this increase, it allows for a budget that can deliver on the Council’s ambitions on improving housing standards and addressing the climate change emergency, whilst adhering to the Rent Standard and wider legislative requirements.

 

In relation to garage rents, it is recommended that following recent rent freezes an increase in line with dwelling rent increases is appropriate and will support maintenance requirements without adversely impacting occupancy levels.

 

The provision, reserves and balances position (and their use); Revenue budgets; Capital Programme; and other wider budget considerations referred to in this report will be presented fully to Cabinet on 11th February 2025.

 

 

Option 1: Set housing and garage rent levels as set out in this report

Option 2: To propose alternatives to those outlined in Section 11 above.

Advantages

Increased rental income supports the Council to deliver against its Regulatory requirements and ensuring homes are safe and decent

Unknown

Disadvantages

Increased rent levels for tenants.

Would require further options analysis

Risks/

Mitigation

The HRA budget outlined in this report and to be presented to Cabinet in February 2025 is sustainable in the long term. The risks associated with Option 1 are outlined in Appendix F – Risks and Assumptions.

 

In addition, the contents of this report have not yet been presented to tenants for consultation. This consultation will take place later in January 2025 place and details will be included in February 2025 report.

Impact on housing service and council housing tenants unknown. Potential for housing service to fall foul of legislative and regulatory requirements, leading to unlimited fines and being ‘named and shamed’ by government.

 

The officer preferred option is Option 1: Set housing and garage rent levels as set out in this report in advance of consideration of wider HRA budget at February 11th 2025 Cabinet.

 

The report highlights challenges faced within the current economic climate, particularly in the context of the increased regulatory and legislative requirements being placed on the social housing sector.

 

The longer-term financial forecasts contain numerous estimates and assumptions, and the service remains attuned to the risks contained within Appendix F, and in particular the impacts of further legislative and regulatory change which could affect business planning within the HRA.

 

Lancaster City Council’s Housing Service remains ambitious, while continuing to operate a sensible but forward-looking approach, seeking to meet Regulatory requirements and deliver safe and decent homes.

 

Members of the Panel asked a number of questions including plans around Right to Buy sales and receipts, energy efficiency, use of service charges, balance of the HRA, proposals to build more council houses and how this will be funded in the earlier years and financial business cases. 

 

Resolved: -

 

That Councillor Caroline Jackson, Leader and Cabinet Member with responsibility for Council Housing, be thanked for her attendance at the meeting. 

 

Supporting documents: