Decision details

9.1

The Executive Director, Neighbourhood Services submitted a report setting out the 2024/25 Housing Revenue Account (HRA) Business Plan. Each year the HRA Business Plan is reviewed and updated to set budgets and charges for the year ahead and to provide an updated 5-year plan and 30-year affordability profile.

The report provided the Strategy & Resources Policy Committee with an update on the current national and local housing context, regulatory requirements, the priorities for Committee action alongside capital and revenue spending plans for 2024/25 and indicated that the Housing Policy Committee will then be responsible for overseeing the scrutiny and, delivery of those plans on behalf of the Council housing tenants of Sheffield.

The HRA Business Plan had also been considered by the Housing Policy Committee at its meeting on 14th December 2023.

In addition to the recommendations contained in the report, the meeting received details of an additional recommendation in respect of rents for temporary accommodation, details of which were set out in paragraph 2.16 of the report.

9.2

RESOLVED: That Strategy and Resources Policy Committee recommends to the meeting of Full Council on 7 February 2024 that:-

(a) the Housing Revenue Account (HRA) Business Plan report for 2024/25 and the HRA Business Plan priorities for 2024/25, as set out in the Financial Appendix to this report are approved;

(b) the HRA Revenue budget 2024/25, as set out in the Financial Appendix to the report is approved;

(c) notes that once adopted by the City Council, monitoring the delivery of HRA Business Plan priorities will be within the remit of Housing Policy Committee and a regular performance reporting schedule will be approved;

(d) rents for council dwellings are increased by 7.7% from April 2024 in line with the Regulator of Social Housing’s Rent Standard;

(e) garage rents for garage plots and sites are increased by 7.7% from April 2024;

(f) the sheltered housing charge is increased by 6.7% from April 2024;

(g) the burglar alarm charge is increased by 6.7% from April 2024;

(h) the furnished accommodation charge is increased by 6.7% from April 2024;

(i) there is no increase to the community heating charge at this time; and

(j) rents for temporary accommodation are increased by 7.7% for 2024/25.

9.3

Reasons for Decision

9.3.1

The report and its recommendations, sets out the scale of the challenge ahead, the limited resources available and the difficult decisions that now need to be taken to deliver a balanced HRA budget for 2024/25 and for the overall 30-year viability. The delivery of a balanced HRA budget is dependent on setting a 7.7% rent increase for Council tenants as set out in this report

9.4

Alternatives Considered and Rejected

9.4.1

The Council is required to both set a balanced in year HRA budget and to ensure that in-year income and expenditure are balanced over 30 years. No other alternatives were considered.