Issue - meetings

Report of the Cabinet Member for Finance and Transformation

Report of the Cabinet Member for Finance and Transformation

Councillor Thorpe, Cabinet Member for Finance and Transformation presented the report which formed part of a suite of documents relating to the Council’s budget setting process for 2025/26. It established the proposes the rent level and proposed increase for Council Housing, Dwelling and Garage rents, Sheltered Support, Management, Service and Heating charges and Furnished Tenancy charges.

Decision:

Cabinet approved the following and commend to the Council to:

·         Approve the 2025/26 budget for the Housing Revenue Account

·         Agree rents to be increased for 2025/26 by 2.7% which is the Government’s maximum allowable increase being September CPI (Consumer Price Index) 1.7% plus 1% with effect from 7th April 2025.

·         Shared ownership rents to be increased by 2.7% in line with the provision which is set out within shared ownership agreements with effect from 7th April 2025.

·         Approve an increase in Garage rents by CPI as at September 2023 CPI + 1% 2.7%.

·         Approve an increase in Sheltered Management and Support Charges by CPI + 1% 2.7%.

·         Approve an increase in Service and Amenity Charges by CPI + 1% 2.7%

·         Approve an increase in Support and Heating charges by CPI + 1% 2.7%

·         Approve an increase in Furnished Tenancy charges by CPI+ 1% 2.7%

·         Note that where a social rent property is re-let to a new or transferring tenant the rent level will be increased to the formula rent (target rent) for that property. In accordance with the Rent Standard, where an affordable rent property is re-let to a new or transferring tenant the rent level be set by reference to 80% of the market rent (including service charges where applicable) for a similar property at the time of letting or the formula rent for the property, whichever is the greater.

Reasons for recommendations:

To progress the Council’s budget setting process to achieve an approved and balanced budget.

Other options considered and rejected:

None.

The Overview and Scrutiny Committee met on the 06^th February and agreed that they endorsed the budget papers as presented and sought assurance that the budget will be the same that gets submitted to full Council on the 19^th February 2025.

Members noted the recommendation from Overview and Scrutiny Committee on the 06^th February 2025.

Councillor D Vernon, Chair of the Overview and Scrutiny Committee attended the meeting following the recommendation made to Cabinet. He advised members that the Overview and Scrutiny Committee met with good attendance to discuss all the budget papers presented to Cabinet. The main concern raised by the Overview and Scrutiny Committee was assurance that the Budget papers presented will be those that go ahead to Budget Council on the 19^th February. It was confirmed that the budget presented to Overview & Scrutiny would proceed unaltered.