Issue - meetings

A report setting out the provisional year end position for the Housing Revenue Account (HRA), subject to external audit approval, for 2023-24 and provides information on the Council’s HRA balances and reserves.

Cabinet NOTED the provisional year end position, variations to the 2023-24 approved budget and the resultant effect on the Council’s HRA balances and reserves for both revenue and capital.

Councillor Sarah Cox, Portfolio Holder for Corporate Finance, Property and Resources introduced the report, the purpose of which was to set out the provisional year end position for the Housing Revenue Account (HRA) for

2023-24 (subject to External Audit approval) and to provide information on the Council’s HRA balances and reserves.

Councillor Cox noted that despite the backlog in the audit of accounts for local authorities, the Council’s Finance Team had met the deadline for the publication of the draft Statement of Accounts by the 31 May 2024.

Councillor Cox advised that the overall position was an overspend on the approved budget of £2k, with a carry forward of a further £203k into 2024/25. This resulted in the deficit of £943k and to draw on reserves of just under £1.2m (planned for in the Council’s Business Plan).

Councillor Cox highlighted that there were a number of significant variations, in particular the reduction in arrears balances and the age of these balances, due to the increased focus on debt recovery.  This had formed an action plan, which was submitted to Cabinet on a regular basis.  The work had led to a reduction in the provision for non-payment of arrears, resulted in a saving of £57k.

Councillor Cox confirmed that spend against the Capital Programme had performed well, with the largest variation being in respect of the Affordable Housing Purchase, which had been delayed due to issues with the developer.

Councillor Cox moved the recommendations and the Leader seconded the motion, noting the good work that had been undertaken by officers in producing reports for Members and also the work on arrears and the additional resource put to it.

In response to the Leader, Dawn Garton, Director for Corporate Services confirmed that the HRA Business Plan was a 30 year Plan.  It was uncertain when Government would review the Code of Audit Practice, which dictated the audit deadlines.

Cabinet NOTED the provisional year end position, variations to the 2023-24 approved budget and the resultant effect on the Council’s HRA balances and reserves for both revenue and capital.

(Non-key Decision)

Reason for Recommendation:

It is important that Cabinet are aware of the financial position of the HRA to ensure they can make informed decisions that are affordable and financially sustainable for the Council.