Issue details

THE HOUSING REVENUE ACCOUNT (HRA) BUDGET (2025/26), RENTS & SERVICE CHARGES (2025/26) & HRA 10 YEAR BUSINESS PLAN (2025/26 – 2034/35)

The current strategic and financial operating environment for the Council’s housing service remains extremely challenging. We are aiming to increase the provision of social and affordable housing with a commitment to build new homes within the next few years, investing (£0.85bn) in existing / new homes over 10 years, improving the services available to residents, making the necessary improvements to building standards and safety, and strengthening resident engagement.

The national economic conditions are expected to stabilise and improve over the next five years (inflation and reducing interest rates). Despite this, the Council’s Housing Revenue Account (HRA) finances continue to be under pressure due to the continuing need for provision of good quality housing and services.

In addition, the confirmation from Government of the national rent policy for the next five years of Consumer Price Index (CPI) plus 1% will help to provide greater sustainability and resilience of the Council’s housing finances.

This report sets out the HRA budget proposals for the financial year 2025/26 including changes to rent levels and other charges as well as an updated HRA 10-year Business Plan.

Decision type: Key

Reason Key: Expenditure/Income over £5m & policies or new income, reserves use, overspend over £300K;

Decision status: For Determination

Wards affected: (All Wards);

Notice of proposed decision first published: 07/01/2025

Report access: Open;

Report Type: Key Decision;

Decision due: 10 Feb 2025 by Cabinet

Lead member: Cabinet Member for Housing and Homelessness

Lead director: Executive Director of Finance and Corporate Services

Department: Finance Department

Contact: Danny Rochford Email: Danny.Rochford@lbhf.gov.uk.

What is the total value of the decision?: Yes