Issue - meetings

To receive a report from the Cabinet on recommendations referred to Council in relation to Revenue Budget Proposals 2025/26 for the Housing Revenue Account.

The Portfolio Holder for Corporate Finance, Property and Resources, Councillor Cox, introduced the report and moved the recommendations. The Leader, Councillor Allnatt, seconded the motion.

During the debate the following points were raised:

·       The Portfolio Holder and Officers were thanked for their good work.

·       Officers were congratulated on receiving the energy efficiency funding.

·       Members were reminded that rents in Melton are modest.

RESOLVED

Council

(1)  Approved the budget estimates for 2025/26;

(2)  Approved the average rent increase of 2.70% for all Council dwellings with effect from 1 April 2025;

(3)  Approved the 2025-26 capital programme, and

(4)  Delegated authority to the Director for Housing and Communities, in consultation with the Director for Corporate Services and Portfolio Holder for Council Housing and Landlord Services, to approve virements within the HRA capital programme during the year to provide flexibility to meet emerging needs and maintain decent homes.

(5)  Noted that as part of the continuing focus on resourcing requirements for tenancy, income and engagement functions, a revised staffing structure is being developed and will shortly be considered by the Chief Executive under existing delegated powers and

(5.1)       That in support of the new structure, to delegated authority to the Chief Executive, in consultation with the Director for Corporate Services, authority to access the HRA Regeneration and Development Reserve for up to £200k in 25/26 to cover both the additional one off and recurring costs of the new structure and enable the resourcing plan to be implemented and

(5.2)       Noted that the recurring costs associated with the change of establishment will be built into the base budget from 26/27 providing the financial viability of the HRA is not undermined.

(For 21, Against 0, Abstentions 1)

At 7:56pm, prior to the commencement of this item, Councillors Carter and Gordon left the meeting.

At 8:00pm, upon the conclusion of this item, Councillors Carter and Gordon rejoined the meeting.

At 8:00pm, upon the conclusion of this item, Councillor Higgins left the meeting and did not return.

To receive the Housing Revenue Account (HRA) Revenue Budget Proposals.

Cabinet:

1)    NOTED the financial position on the HRA as at 30 November 2024 and the year-end forecast for both revenue and capital.

2)    APPROVED the increase of 5% to the Independent Living Service charge as outlined within the report at paragraph 5.25.

3)    RECOMMENDED to Council that the budget estimates for 2025/26 be approved.

4)    RECOMMENDED to Council that an average rent increase of 2.70% for all Council dwellings be approved with effect from 1 April 2025.

5)    RECOMMENDED to Council that the 2025/26 capital programme be approved.

6)    RECOMMENDED to Council that delegated authority be given to the Director for Housing and Communities, in consultation with the Director for Corporate Services and the Portfolio Holder for Council Housing and Landlord Services, to approve virements within the HRA capital programme during the year to provide flexibility to meet emerging needs and maintain decent homes.

7)    RECOMMENDED to Council to note that as part of the continuing focus on resourcing requirements for tenancy, income and engagement functions, a revised staffing structure is being developed and will shortly be considered by the Chief Executive under existing delegated powers and

1.1. RECOMMENDED to Council that in support of the new structure, to delegate to the Chief Executive, in consultation with the Director for Corporate Services, authority to access the HRA Regeneration and Development Reserve for up to £200k in 25/26 to cover both the additional one off and recurring costs of the new structure and enable the resourcing plan to be implemented and

1.2. RECOMMENDED to Council to note that the recurring costs associated with the change of establishment will be built into the base budget from 26/27 providing the financial viability of the HRA is not undermined.

The Portfolio Holder for Corporate Finance, Property and Resources, Councillor Cox, introduced the report and moved the recommendations. Councillor Allnatt seconded the motion.

Members commented that it was pleasing to see how much the Council had reduced rent arrears. It was clarified that the Council is the best improved across the sector on the reduction of rent arrears.

It was noted that the neighbouring authorities, who the Council would likely merge with under LGR, also have Council housing stock too.

RESOLVED

That Cabinet:

1)    NOTED the financial position on the HRA as at 30 November 2024 and the year-end forecast for both revenue and capital.

2)    APPROVED the increase of 5% to the Independent Living Service charge as outlined within the report at paragraph 5.25.

3)    RECOMMENDED to Council that the budget estimates for 2025/26 be approved.

4)    RECOMMENDED to Council that an average rent increase of 2.70% for all Council dwellings be approved with effect from 1 April 2025.

5)    RECOMMENDED to Council that the 2025/26 capital programme be approved.

6)    RECOMMENDED to Council that delegated authority be given to the Director for Housing and Communities, in consultation with the Director for Corporate Services and the Portfolio Holder for Council Housing and Landlord Services, to approve virements within the HRA capital programme during the year to provide flexibility to meet emerging needs and maintain decent homes.

7)    RECOMMENDED to Council to note that as part of the continuing focus on resourcing requirements for tenancy, income and engagement functions, a revised staffing structure is being developed and will shortly be considered by the Chief Executive under existing delegated powers and

7.1)         RECOMMENDED to Council that in support of the new structure, to delegate to the Chief Executive, in consultation with the Director for Corporate Services, authority to access the HRA Regeneration and Development Reserve for up to £200k in 25/26 to cover both the additional one off and recurring costs of the new structure and enable the resourcing plan to be implemented and

7.2)         RECOMMENDED to Council to note that the recurring costs associated with the change of establishment will be built into the base budget from 26/27 providing the financial viability of the HRA is not undermined.

(Non-key decision)

Reason for recommendations

The Local Government and Housing Act 1989 (the 1989 Act) requires the Council to produce and publish an annual budget, including the setting of rents, for the HRA which avoids a deficit. This report sets out the detail for Cabinet to consider prior to making recommendations to Council. It is a requirement that this be scrutinised prior to its submission which has been undertaken by the Scrutiny Committee in January 2025. The proposed rent increase is in line with Government policy and is the maximum increase allowed.