Issue - meetings

Report of the Cabinet Member for Finance and Assets –TO FOLLOW

RESOLVED THAT:

1.    The interim HRA budget proposals for 2023/24 (shown at Appendix 2) for consultation including a proposed rent increase of 7% and changes to other rents and charges as detailed within the report be approved;

2.    The proposed HRA capital programme for 2023/24 as shown at Appendix 3 and Appendix 4 be approved for consultation;

3.    The revised HRA forecast for 2022/23 be noted;

4.    Authority be delegated to the Executive Director Finance, Assets and Regeneration, in consultation with the Cabinet Member for Finance and Assets, to determine and approve any additional material that may be needed to support the presentation of the interim budget proposals for consultation;

5.    Consultation responses be sought by 31^st January 2023.

The Cabinet Member Finance, Assets and Regeneration presented the report, noting that the cost of living crisis and financial turbulence had had a major impact on the HRA, with excess cost inflation, increased interest, energy costs and additional compliance costs increasing the overall expenditure in the HRA by £2.5m next year. While the budget proposal was for rents to increase, this had been capped at 7%, resulting in the budgeted operating surplus falling from over £1m to just £70,000 in 2023/24.

This high inflation and capped rent had a substantial impact on the 30-year projections, with capacity in the HRA being reduced by an estimated £92m. This reduced capacity in the HRA meant that the scale and pace of investment in existing and new homes needed to be carefully managed in order to ensure that vital services to residents in our communities were protected.

He added that while the scale and pace of investment needed to be managed appropriately, the 2023/24 budget proposals in this report demonstrated the council’s commitment to its ambitious plans for delivering new homes, improving the quality of existing homes and protecting services for residents and communities for the benefit of Cheltenham. This included £63m over 3 years for additional affordable homes, £32m investment in improving existing homes and £6m specifically in energy improvement measures for the least efficient homes.

He summarised that the interim budget proposals for 2023/24, including the focus on supporting residents through the cost-of-living crisis, investing in their homes and delivering more net zero homes, would help improve outcomes for all residents and communities, reduce inequality and support the economic recovery of Cheltenham through this challenging period.

The Cabinet Member Housing thanked him for bringing the budget proposals forward, and reiterated the financial pressures faced. It was testament to CBC and CBH colleagues that they were able to continue delivering their £180m housing investment plan and improving existing homes. The report also outlined how they were working towards making Cheltenham Net Zero by 2030, investing in communities, working towards raising standards in line with the Social Housing White Paper, and providing additional support during the cost of living crisis.

The Leader moved to the vote, where it was unanimously:

RESOLVED THAT:

1.    The interim HRA budget proposals for 2023/24 (shown at Appendix 2) for consultation including a proposed rent increase of 7% and changes to other rents and charges as detailed within the report be approved;

2.    The proposed HRA capital programme for 2023/24 as shown at Appendix 3 and Appendix 4 be approved for consultation;

3.    The revised HRA forecast for 2022/23 be noted;

4.    Authority be delegated to the Executive Director Finance, Assets and Regeneration, in consultation with the Cabinet Member for Finance and Assets, to determine and approve any additional material that may be needed to support the presentation of the interim budget proposals for consultation;

5.    Consultation responses be sought by 31^st January 2023.