Agenda and draft minutes

There were no apologies for absence.

If a Councillor has a disclosable pecuniary interest in a particular item, whether or not it is entered in the Authority’s register of interests, or any other significant interest which they consider should be declared in the public interest, they should declare the existence and, unless it is a sensitive interest as defined in the Member Code of Conduct, the nature of the interest at the commencement of the consideration of that item or as soon as it becomes apparent.

Where Members of the public are not allowed to be in attendance and speak, then the Councillor with a disclosable pecuniary interest should withdraw from the meeting whilst the matter is under consideration. Councillors who have declared other significant interests should also withdraw from the meeting if they consider their continued participation in the matter would not be reasonable in the circumstances and may give rise to a perception of a conflict of interest.

Councillors are not obliged to withdraw from the meeting where a dispensation to that effect has been obtained from the Standards Committee.

There were no declarations of interest.

To approve the minutes of the previous meeting held on 5^th November 2025.

The minutes of the meeting held on 5th November 2025 were agreed to be accurate.

This report provides an update on the overall preparation and proposals for the 2026/27 revenue budget, risks, financial resilience, and the impact of those proposals. In addition to the slides attached, a further presentation on the Housing General Fund will delivered at the meeting.

Councillor Rowan Ree (Cabinet Member for Finance and Reform) introduced the item and presented the Corporate Budget Overview to the Committee. He explained that the 2026/27 budget needed to be taken in the context of the recent Autumn Statement from the Government, as well as a changing Demographic with Hammersmith and Fulham (H&F). He added that the Fair Funding Review was now a three-year settlement and that there was expected to be budgetary pressures due to this from 2027/28. Sukvinder Kalsi (Executive Director – Finance and Corporate Services) introduced the directorate specific presentation. He highlighted that demand for homelessness services had continued to rise amid a shortage of available social and affordable housing, compounded by the ongoing cost?of?living pressures, inflation, increased interest rates, and the resulting strain on household incomes. He mentioned that homelessness approaches had peaked at 3,600 in 2023/24, with a projected 2,900 in 2025/26. The budget stood at £51.3 million, including £30.5 million for temporary accommodation procurement, £4.5 million for housing solutions staffing, £7 million for corporate support charges, and £3.6 million for supported housing, set against an income of £29.9 million. Key financial changes included £1 million attributed to inflation, £1.2 million in savings requirements, and £4.8 million arising from depreciation and support charges.

Councillor Adronie Alford referred to the corporate overview presentation and specifically the savings proposal of reducing arrears. She asked how this was going to be achieved. Councillor Rowan Ree explained that the aim was to increase Council Tax collection rates to 98% by identifying more people that should be paying Council Tax, that currently weren’t. He added that some residents were not aware that they were no longer eligible for discounts on their Council Tax, so the Council would support those residents, and others, with their ethical debt collection policy.

Councillor Adronie Alford raised concerns regarding the Housing Company and wanted to ensure that the properties within the company were not too expensive. She questioned the management of the Housing Company and asked whether leases would be moving from Council leases to Housing Company leases on an SLA? Sukvinder Kalsi confirmed that the current team would be assigning leases to the Housing Company. He explained that the Housing Company was a general fund company for the Council and therefore H&F could claim more local housing allowances. Councillor Adronie Alford sought clarification that this change was to allow H&F to work around caps on the funding brought in from the Government and if this was the case, whether the Government were likely to allow this. Sukvinder Kalsi confirmed that this was the case and that other Local Authorities (LAs) had already been doing this.

Councillor Adronie Alford asked how large families currently placed in bed and breakfast accommodation would be housed in the longer term. Richard Shwe (Director of Housing) explained that the service was actively exploring options, including commercial opportunities and partnerships with hotel businesses. In response to a further query from Councillor Alford, he confirmed that  ...  view the full minutes text for item 4.

A slide presentation on the Housing Revenue Budget 2026/27 and its Business Plan will be delivered at the meeting.

Danny Rochford (Head of Finance – Housing) introduced the report which outlined the 2026/27 budget for the Housing Revenue Account (HRA). The service faced increasing demand alongside challenges arising from the condition of the housing stock, evolving safety requirements, additional regulatory pressures and the wider climate?change agenda. Financial pressures included inflation, rising interest rates and the impact of wages and unemployment, set against the confirmation of the national rent policy for a ten?year period from 2026/27.

The Housing Revenue Account ten?year business plan was based on a tenanted stock of 11,800 homes and 5,090 leasehold properties, with planned investment of £940 million in repairs and capital works. A minimum general balance of £5 million had been maintained, supported by cumulative efficiencies of £3.9 million. For 2026/27, the budget assumed pay inflation of 2.5%, price and contract indexation of 3%, a void rent loss of 1.3%, a provision for tenant arrears of 87% and an interest rate of 4.5% on new borrowing. Rents were increasing by 4.8%.

Reserves had increased by £0.9 million over the previous two years and while £100 million was expected to be borrowed in the current year, no new borrowing was planned for the following year, contingent on development sales. The total value of the housing portfolio stood at £1.4 billion, with £347 million in outstanding debt and arrears amounting to £7.6 million.

Councillor Jacolyn Daly mentioned that she was disappointed that the HRA report was not included within the agenda pack, as Committee Members were not able to read it in advance of the meeting. She stressed the importance of having all the papers in advance.

Councillor Jacolyn Daly highlighted the difference between a 4% social rent increase and a 16% increase in the private sector. She sought clarification on the recommended approach, which aimed to minimise rent increases while protecting essential services, and asked about the £1.52 per week increase in service charges and the options available when seeking to set a balanced budget. Danny Rochford explained that the council faced significant financial challenges and had limited options. The primary available measure was to increase the Housing Revenue Account’s main income stream, which was rents. He stated that the council had worked hard to keep rent increases as low as possible but that successive years of financial pressure meant an increase was now necessary to ensure the HRA remained adequately resourced and financially sustainable.

Councillor Jacolyn Daly asked Richard Shwe whether he was satisfied with the rent increase level that had been set. Richard Shwe responded that it had been difficult to produce a balanced budget and that the increase was at the higher end of what the council would have preferred. He explained that service structures were being reviewed to ensure they were fit for purpose. In neighbourhood services, it had become clear that the use of temporary staff meant residents lacked continuity, and he noted that the service had moved from one housing officer per 800 homes to one per  ...  view the full minutes text for item 5.

Dates of future meetings:

·       20^th April 2026

The next meeting would take place on 20^th April 2026.