Issue - meetings

Report of the Cabinet Member for Finance and Assets

Report to follow.

The Cabinet Member for Finance and Assets introduced the report, highlighting that the same economic challenges faced by the General Fund continued to put financial pressure on the Housing Revenue Account (HRA). That said, he was pleased to report that with the confirmation of national rent policy for 2024/25, along with the small reduction in interest rates from the peak in 2022, the long-term position of the HRA has started to show signs of improvement.

He made the following comments:

-       he regretted what he felt was the continued short-term policy approach from government towards local authority housing, emphasising the need for longer term funding plans and rent policy in order to address the growing homelessness crisis and the lack of affordable and social housing, which need long-term commitments, policy certainty and sensible funding solutions;

-       the Cabinet set a clear direction of travel in October 2023 to bring housing services back in house which was in the best interest of communities. This bold vision had been set to deliver savings to retain the council’s financial resilience, but also presented an opportunity to deliver services better, and to be better placed to respond to further government regulations or compliance requirements;

-       a commitment was made in last year’s budget to continue to grow the HRA in order to support tenants by investing in new and existing homes, despite the financial challenges faced. He believed this has proved to be the right approach.

He said the HRA interim budget proposals for 2024/25 before Members would deliver on the ambition set by the council to provide a housing service that:

-        places residents at the centre of decision making;

-        delivers high quality new homes;

-        reinvests in existing homes and neighbourhoods;

-        delivers value for money;

-        continues to support the most vulnerable and those in financial hardship in our communities.

He ended by putting on record his thanks to all the staff at Cheltenham Borough Homes and officers within the council, whose hard work on behalf of the town’s communities was valued and recognised. The HRA budget for 2024-25 enables us to continue supporting our tenants, invest in their homes, deliver new homes, and continue to put Cheltenham first.

Member Questions

In response to a question, the Cabinet Member confirmed that the cost of bringing CBH back in house would be met from CBH reserves.

Member Debate

The Cabinet Member for Housing began by thanking all officers from CBC and CBH for their outstanding work in the last 12 months, especially in view of the increase in demand for housing services.  She made the following points:

-        it was upsetting to see people being forced out of their homes with limited opportunity to find alternative accommodation, but was pleased that building and investment in new homes would continue, highlighting 390 affordable new homes in the pipeline over the next four years –high quality, sustainable, energy efficient homes. It is exciting that nine such homes have already been built in  ...  view the full minutes text for item 10

Report of the Cabinet Member for Finance and Assets, Councillor Peter Jeffries

Report to follow.

The Cabinet Member for Finance and Assets invited any questions on the item.  There were none.

RESOLVED THAT: Council is recommended to:

1.    approve the final HRA budget proposals (shown at Appendix 2);

2.    approve a rent increase of 7.7% for social rent homes, affordable rent homes and shared ownership homes and changes to other rents and charges as detailed within the report;

3.    approve the HRA capital programme as shown at Appendix 3 and the detailed capital programme at Appendix 4;

4.    approve the HRA’s Asset Management Plan (AMP) to 2028 at Appendix 5;

5.    note the revised HRA forecast for 2023/24.