Agenda item - HRA Budget 2024/25

The Executive are recommended to make the resolutions set out in the report at agenda item 9.

Portfolio Holder for Finance, Assets and Property together with Co-Portfolio Holders for Housing.

The Executive RECOMMEND that the Council approves:

I. The weekly rent for Council dwellings to be increased by up to 7.7% from the 2023/24 weekly rent charges, effective from 1 April 2024, within the permitted guidelines contained within the Government’s rent setting policy

II. That service charges and utility charges at non senior living accommodation be increased by 7.7% per week

III. That the heating charges in senior living accommodation be increased by 20% per week from 1 April 2024 to £31.20

IV. The Service Charge in senior living accommodation be increased by 15% per week from 1 April 2024 to £24.04

V. The revised HRA Business Plan for 2024/25 to 2053/54 as set out in Annexe 1

VI. The approved change to the fees and charges as set out in Annexe 4 is noted;

VII. The HRA capital programmes as show in Annexe 5 and 6;

VIII. The financing of the capital programmes in line with the resources as shown in Annexe 7

IX. To deliver the works identified in the maintenance budgets it is recommended that authority is delegated to the Executive Head of Housing, in consultation with the s151 Officer, to procure and enter contracts valued over £100,000 show in Annexe 8

X. An increase in inflation provision proposed within the Housing Revenue Account budget of £48,207 to be funded by the £159,459 increase in funding guarantee grant as confirmed by the Department of Levelling Up, Housing and Communities on 5 February 2024.

Cllr Merryweather, Portfolio Holder for Finance and Assets, advised that a replacement Annexe 5 had been circulated, and introduced the HRA Budget 2024/25 by summarising:

· That the HRA operated in highly a regulated environment which governed how resources could be used

· Inflationary cost pressures were apparent together with growth pressures including the need to invest in maintaining an adequate housing management IT system specific to the HRA

· Funding for the entire service came from the rents and service charges paid by tenants

· In 2019 the Government announced that providers of social housing would be permitted to increase average weekly rents by the previous September Consumer Price Index (CPI) plus an additional 1% for five years from April 2020.

· For 2023/24 a CPI+1% rise would have been 11.1% which the government capped at 7%, and the Council contained to 4% in recognition of the economic situation to help protect tenants.

· CPI in September 2023 was 6.7% plus the additional 1% which resulted in a maximum allowable rent increase of 7.7% for 2024/25as proposed

· Alternative scenarios of 1%, 4% and 6% increases had been tested

· 2024/25 would be a 53 week rent year, for tenants not in receipt of Universal Credit (UC) there would be no adverse impact. However, those receiving Universal Credit would be impacted

Councillor Paul Rivers, Co-Portfolio Holder for Housing, spoke to thank the Tenants Panel and Landlord Services Advisory Board for their engagement with the Budget setting process. Cllr Rivers said that the Tenants Panel was right to have highlighted the decline in tenant satisfaction from 83% in 2017 to 68% in 2023; and concurred that tenants were not responsible for macro-economic conditions. Cllr Rivers endorsed the recommendations with a heavy-heart and emphasised that the Council was committed to providing an improved housing service.

The Leader advised of an alteration to the recommendations to include recommendation X, duly supported by the Executive.

Executive Members’ statements in support of the recommendations included:

· That the 4% rise in the previous year was to shield residents during an inflationary peak

· The Council was committed to improving the service, particularly repairs and maintenance

· Communications to tenants would be improved to encourage awareness and take-up of available support, including discretionary relief; and

· Acknowledgment of pressure on the supply of social housing stock, and that the Council was building high quality energy efficient homes for the future.

The Executive resolved unanimously to RECOMMEND that the Council approves:

I. The weekly rent for Council dwellings to be increased by up to 7.7% from the 2023/24 weekly rent charges, effective from 1 April 2024, within the permitted guidelines contained within the Government’s rent setting policy

II. That service charges and utility charges at non senior living accommodation be increased by 7.7% per week

III. That the heating charges in senior living accommodation be increased by 20% per week from 1 April 2024 to £31.20

IV. The Service Charge in senior living accommodation be increased by 15% per week from 1 April 2024 to £24.04

V. The revised HRA Business Plan for 2024/25 to 2053/54 as set out in Annexe 1

VI. The approved change to the fees and charges as set out in Annexe 4 is noted;

VII. The HRA capital programmes as show in Annexe 5 and 6;

VIII. The financing of the capital programmes in line with the resources as shown in Annexe 7

IX. To deliver the works identified in the maintenance budgets it is recommended that authority is delegated to the Executive Head of Housing, in consultation with the s151 Officer, to procure and enter contracts valued over £100,000 show in Annexe 8

X. An increase in inflation provision proposed within the Housing Revenue Account budget of £48,207 to be funded by the £159,459 increase in funding guarantee grant as confirmed by the Department of Levelling Up, Housing and Communities on 5 February 2024.

Reasons:

In order to approve the use of reserves and resources to fund Waverley Borough Councils Landlord Services, the 30 year maintenance programme, and to deliver proposals for building new affordable homes and stock remodelling.