Decision - Budget & Capital Investment HRA Programme 2026-27 and MediumTerm Financial Strategy

This report presents the proposed Housing Revenue Account (HRA) revenue and capital budget for 2025/26 as required by the Local Government & Housing Act 1989.

That Cabinet: 1) Approves a rent increase of 4.8% in line with government legislation as detailed in paragraph 3.12 of the report. 2) Approves a 5% rent increase for all new and re-let tenants, in accordance with the rent flexibility policy as set out at paragraph 3.10 of the report. 3) Approves the service charges and fees as detailed in Appendix 2 to the report. 4) Notes the Medium-Term Financial Strategy (MTFS) and 30-year financial projections shown in Appendix 4 to the report. 5) Notes and recommends to Full Council for approval the HRA Revenue Budget for 2025/26 as outlined in table 1 of the main report and Appendix 1. 6) Notes and recommends to Full Council for approval the new Capital Programme Budget of £79.640m for 2026/27 be agreed as part of the revised capital budget of £126.339m (which includes reprofiles of £46.699m from 2025/26). 7) Notes and recommends to Full Council approval of the earmarking of £1m reserves against disrepair claims for 2026/27. 8) Notes and recommends to Full Council for approval the 5-year capital programme as set out in Appendix 3 to the report.

The HRA is forecast to have a medium-term revenue deficit of £5.163 million and a 30-year deficit of £175.813 million. The plan highlights the need to identify savings and efficiencies, review income, and closely monitor borrowing and reserves to maintain long-term financial stability.