Agenda item

This report provides the annual update on the baseline position for the Housing Revenue Account Business Plan (HRABP) projections. 

The HRABP forecasts income, expenditure, investment and borrowing in respect of Council housing over a 30 year period.

The update has been produced by our retained expert consultant; Housing Finance Associates and is based entirely on inputs that have been provided by the Council.

The Cabinet

            RECOMMEND TO FULL COUNCIL

            That the updated Housing Revenue Account Business Plan 202/21 be noted.

The Chairman welcomed Mr Glenn Smith, Director, from Housing Finance Associates Ltd, the Council’s external consultant, to the meeting as he would be providing a presentation on the Housing Revenue Account (HRA) Business Plan Update.

Firstly, the Cabinet Member for Residential Services, Councillor Mrs Gregory, introduced this item stating that the report provided the annual update on the Housing Revenue Account (HRA) Business Plan and that it set out the baseline position for the HRA Business Plan projections, planned forecast in terms of income, expenditure, investment and borrowing in respect of Council housing over a 30 year period.   The key headlines were that £2m of HRA balances were to be retained during the 30-year period covered by the forecast and the inclusion of new build programme commencing in 2022/2023 to deliver 15 new homes annually and delivering the capital programme within available resources.

Mr Smith confirmed that each year an update was provided on the baseline position for the Housing Revenue Account Business Plan projections in respect of the provision of Council housing within the Arun District over a 30-year period.  He explained that the underlying information was continually changing in terms of updated changes in inflation and borrowing rates but that it provided some continuity in terms of delivering the long-term plans that the Council set each year.  Mr Smith then referred to the numerous charts set out in the report providing information on the health of the HRA as forecasted in terms of the level of balances; the HRA capital programme; the level of HRA debt; and the ability of the authority to repay debt within a reasonable timescale.  This information had been produced using the Council’s own data and budgets for the revenue and capital programme and in terms of stock condition works that needed to be conducted over the long-term and that use of the Council’s projections had been made in terms of the development of projects and schemes which were either planned or where the Council had aspirations to deliver in future years.

The Cabinet Member for Residential Services, Councillor Mrs Gregory, responded to the presentation by thanking Mr Smith for providing such a detailed overview but in a way that was very easy to follow.  It was great news that the HRA’s finances allowed the Council to continue to purchase Council stock to a total of 230 properties between now and 2026.  Despite this, it was still disappointing that the Right to Buy initiative, still resulted in the Council’s valuable stock continuing to be eroded at a time when there were so many local families in housing need.  The cost of providing the required temporary social housing was very high putting a further strain on budgets.

The Chairman also thanked Mr Smith for his detailed overview of the report and confirmed that he welcomed the information that it held in that the Council was able to provide more affordable lower cost to rent housing to those on the Council’s waiting list and to obviate the need to put residents into temporary accommodation. He welcomed the medium-term commitment to continue to substantially increase and maintain the Council’s building programme to make sure that the housing stock was maintained and increased in the long-term.

The Chairman then invited non-Cabinet Councillors if they had questions to ask. Questions were asked about the baseline revenue forecast and the use of balances.

The Cabinet, then

            RECOMMEND TO FULL COUNCIL

That the updated Housing Revenue Account Business Plan for 2020/21 be noted. 

The Cabinet confirmed its decision as per Decision Notice C/044/11012021, a copy of which is attached to the signed copy of the Minutes.