Report of Executive Director (Finance and Resources)

The Cabinet considered a report of the Executive Director (Finance and Resources) and Executive Director (Environment and Place) setting out the Housing Revenue Account (HRA) budget and Rent Setting for 2025/26, together with the information necessary to set a balanced budget as required by legislation.  This item was considered by the Policy and Resources Scrutiny Committee.

Recommended:

1. That an average rent increase of 2.7% on all tenancies, be approved.

2. That an average rent increase of 2.7% on shared ownership properties, be approved.

2.3. That an increase of 2.75% on garage rents for tenants and leaseholders to £15.80 per week, a rise consistent with the standard approach taken across the range of City Council’s fees and charges for 2025/26 and an increase of 20% on private garage rents to £22.15 (inclusive of VAT), be approved. All variants on a standard garage will receive a proportionate increase.

4. That the South Essex Homes core management fee at £8,275,000 for 2025/26, be approved.

5. That South Essex Homes proposals for an average decrease of 6.1% in service charges to reflect the estimated costs incurred for 2025/26, be approved.

6. That South Essex Homes proposals for an average 22.3% decrease in heating charges for sheltered housing tenants and for hostel tenants to reflect the estimated costs incurred for 2025/26, be approved.

2.7. The following appropriations be approved:

• £60,000 to the Repairs Contract Pensions Reserve.

• £4,720,000 to the Capital Investment Reserve.

• £7,237,000 from the Capital Investment Reserve.

8. That, subject to the approval of resolutions 2 to 7 above, the HRA budget for 2025/26 as set out in Appendix 1 to the submitted report, be approved.

9. That the value of the Council’s capital allowance from 2025/26 be declared as £64,983,000 as determined in accordance with regulation 16 of the Local Authorities (Capital Finance and Accounting) (England) Regulations.

10. That authority be delegated to the Executive Director (Environment and Place) to submit the final bid for the Warm Homes Wave 3 bid once completed.

Reasons for recommendations:

Part of the process of maintaining a balanced budget for the HRA is to undertake an annual rent review and assessment of other service and facilities charges.  Full Council will need to approve the HRA budget and any changes to rent and other services prior to the start of the financial year.

Other Options:

There are other options available to Councillors in relation to the proposed rent and other services and facilities increases.

Note: This is a Council Budget Function and not eligible for call-in.

Cabinet Members: Cllr Collins/Cllr Jones