Issue - meetings

Report of the Cabinet Member Finance and Assets

The Cabinet Member for Finance and Assets presented the report, which summarised the Housing Revenue Account (HRA) revised forecast for 2022/23 and the Cabinet’s budget proposals for 2023/24. He emphasised the impact of the cost of living crisis and financial turbulence on the HRA, with excess cost inflation, increased interest, energy costs and additional compliance costs increasing overall expenditure in the HRA by £2.5m next year. Whilst the budget proposal was for rents to increase, this had been capped at 7%.

The long-term impact of high inflation and the rent cap on the 30-year outlook was substantial, with capacity in the HRA reducing by an estimated £79m. This reduced capacity meant that the scale and pace of investment in existing and new homes needed to be carefully managed to ensure that vital services to residents were protected. While the scale and pace of demonstrated the council’s commitment to its ambitious plans for delivering new homes, improving the quality of existing homes and protecting services for tenants.

He highlighted a number of key points, including £63m over three years for additional affordable homes, £32m investment in improving existing homes and £6m specifically for energy improvement measures for the least efficient houses. A further detail which did not go out with the consultation paperwork was at paragraph 5.5. Cheltenham had been allocated £2.36m from the government’s Local Authority Housing Fund to support refugee guests, predominantly from Ukraine and Afghanistan. The total cost of providing those homes was estimated to be around £6m, following a list of criteria given by the government, including a condensed timescale for their provision. Officers from CBC & CBH were already working hard on this.

The 2023/24 proposals continued their focus on supporting tenants through the cost of living crisis, with CBH’s Benefit and Money Advice and Training and Employment teams targeting resources in a proactive and preventative approach that was really working for tenants in need. The Help2 initiative was equally beneficial, working with a range of partners and agencies. Funding for these services had been protected, recognising the challenging period ahead for their tenants and communities

The budget continued to invest in their priority to deliver net zero homes, and continued with their ambitious investment in delivering more affordable homes. All of this investment would help improve outcomes for residents and our communities, reduce inequality and support the economic recovery of Cheltenham throughout this challenging period. The cost of living crisis, energy crisis and continuing housing crisis had put a real strain on CBH officers but their work in support of tenants had been exemplary, and he put on record his thanks to all of them for their efforts and continued hard work. He also thanked the Executive Leadership Team and the CBH Board, and commended the HRA budget proposals to Council.

There being no Member questions, the Mayor moved into debate, where the following points were made:

-       CBH was to be congratulated on the transformation of the council’s housing stock over the last few decades.  ...  view the full minutes text for item 10