Cabinet:

Noted the proposed income and expenditure for the housing revenue account business plan up to 2050.

The Director of Housing Patrick Odling-Smee presented the report to Cabinet.

By way of introduction, the Housing Revenue Account is a sub-account of the Council’s general fund and is funded from the rents and other charges paid by the council’s tenants. Under the Local Government & Housing Act 1989 the HRA is ring fenced for service relating to the council’s role as a landlord. This includes the management and maintenance of the existing stock and the development of new housing stock. The Council is required to ensure that the HRA does not operate in deficit in any financial year.

It is controlled by legislation and the Council are legally obliged to maintain the account.  Since 2012, the best practice recommendations for the management of the HRA has been carried out on a business planning basis with the planned income and expenditure for the next 30 years projected to ensure that the commitments and assumptions can deliver a plan that it viable.

The Business Plan is based on a number of assumptions detailed in the report. 

The council has carried out a stock condition survey during 2020 to assess the investment needs of the current housing stock. This has been based on surveys of a sample of properties and the analysis of the data held on the council’s asset management system. Appendix 1 of the report sets out proposed the investment needs for the stock over the next 30 years. In principle, the investment in existing stock should be funded through revenue contributions to capital rather than borrowing as the investment maintains the value of the asset rather than creating an asset.

The pressure on the business Plan will exist over 7 years however, after then substantial returns are anticipated.  The Council has been working hard with Savills and CIPFA to ensure the Business Plan is well managed and within the rules of prudential borrowing.

It has been possible to invest millions of pounds in securing an innovative and caring Council to provide new and affordable, good quality housing for the benefit of the most vulnerable and needy members of the Borough.

Cabinet:

Noted the proposed income and expenditure for the housing revenue account business plan up to 2050.