Agenda item

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

The Cabinet Member for Finance and Assets introduced his report, saying that the proposals will be published for consultation, which will run until 26 January.  He said the economic challenges outlined earlier continue to put financial pressure on our Housing Revenue Account (HRA), but with confirmation of national rent policy for 2024/25, along with the downward movement in inflation from the peak in 2022, the longer-term position of the HRA has started to show signs of improvement.

He said last year’s commitment to continue to grow the HRA and invest in new and existing homes for the benefit of our residents and communities, despite the financial challenges, has proved to be the right approach, and the budget proposals now put forward will maintain and deliver on our ambition to provide a housing service with residents at the centre of decision-making, delivering high-quality new homes, reinvesting in existing homes and neighbourhoods, and delivering value for money.

The Cabinet Member for Housing thanked the Cabinet Member for Finance and Assets and officers at CBC and CBH for the report, and wondered how important government funding for social housing decarbonisation was?  This has reduced with the second wave from 60% to 40%, but the improvements, (such as cavity wall and loft insulation, heat pumps and double glazing) not only improve lifestyles but also make homes more energy-efficient and lower energy bills.  The council has already invested £1.4m in Wave 1, but there is still much to do and the improvements are costly. 

The Cabinet Member for Finance and Assets shared these concerns, and confirmed that funding from central government is uniquely important in helping tenants and residents all around the country who are suffering from fuel poverty and the cost of living crisis.  Without it, the council will have to pay for all the improvements, which takes funds away from other priorities, such as house-building. He was not convinced that the government was fully committed to tackling fuel poverty and decarbonisation of homes, but said CBC tends to carry on with this work in spite of that.

The Cabinet Member for Housing commented that the report is very insightful and shows the breadth of services the council provides through the HRA, from building new homes, to supporting residents with advice on finance and how to make efficiencies in their homes.

The Cabinet Member for Finance and Assets agreed that local government finance has been a roller coaster for the last 12 months, and thanked finance officers again for their work.   He was pleased to commend the report to Members. 

RESOLVED THAT:

1.    the interim HRA budget proposals for 2023-24 (shown at Appendix 2) for consultation, including a proposed rent increase of 7.7% and changes to other rents and charges as detailed within the report, is approved;

2.    the proposed HRA capital programme for consultation, as shown at Appendix 3, and the detailed capital programme in Appendix 4, is approved;

3.    the revised HRA forecast for 2023-24 is noted;

4.    authority is delegated to the Executive Director for 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 are sought by 31 January 2024.