Issue - meetings

Report of the Deputy Leader and Cabinet Member for Finance and Transformation is attached

Report of the Deputy Leader and Cabinet Member for Finance and Transformation is attached

The Cabinet member for Finance and Transformation presented the report to members.  The report highlights the proposed Housing Revenue Account (HRA) Annual Revenue Budget and Capital Investment Plan Programme for 2026-27, including the proposed increases in rents, garage rents, service charges and any other relevant charges within the HRA for 2026/27 Councillor Vernon advised members that the Overview and Scrutiny Committee did scrutinise the budget at their meeting on 10 February 2026, and thanked the Director of Finance and staff for the work they had undertaken.

Councillor Mike Smith queried rent convergence and whether there is an aim to close the gap between affordable and social rent? 

Neil Kissock, Director of Finance advised that there has been a consultation around it however there has been a delay in being able to implement it. 

Councillor Mike Smith also sought assurance around the debt peaking on HRA, and whether this was a doomsday scenario. 

Neil Kissock, Director of Finance responded that this is worst case scenario and work will be completed over the next few years around this. 

Decision  Cabinet: 

1. Approved the 2026/27 budget for the Housing Revenue Account 
2. Agreed and approve the proposed HRA Capital Investment Plan for 2026/27. 
3. Approved the setting of individual social formula rents for 2026/27 based on the current National Social Rent Policy, giving a real rent increase of 4.8% with effect from 1st April 2026 (being September 2025 CPI (Consumer Price Index) 3.8% plus 1%). 
4. Approved the setting of individual actual affordable rents for 2026/27 based on the current National Social Rent Policy, giving a real rent increase of 4.8% with effect from 1st April 2026. 
5. Approved shared ownership rents to be increased by RPI (as at February 2026) plus 0.5% in line with provisions set out within shared ownership agreements with effect from 1 st April 2026. 
6. Approved an increase in Garage rents of 4.8% with effect from 1st April 2026. 
7. Approved an increase in Sheltered Management and Support Charges of 4.8% from 1 st April 2026. 
8. Approved an increase in Service and Amenity Charges of 4.8% from 1st April 2026. 
9. Approved an increase in Support and Heating charges of 4.8% from 1st Apri l 2026. 
10. Approved an increase in Furnished Tenancy charges of 4.8% from 1st April 2026. 
11. Approved continuation of the policy that when a social rent property is re-let to a new or transferring tenant the rent level will be revised to match the formula rent (target rent) for that property. 
12. Noted in accordance with the Rent Standard, that 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. 
13. Approved in principle in line with Government’s commitment confirmed in January

14.2026, the re-introduction of Rent Convergence for Bury’s HRA stock, which will come into effect from April 2027, with an  ...  view the full minutes text for item 119

Report of the Deputy Leader and Cabinet Member for Finance and Transformation is attached

Councillor Thorpe introduced the budget reports, noting that rental costs were increasing and that, following the budget?setting process, the Council faced a structural gap of just under £10 million. The priority remained to deliver a sustainable and legally compliant budget, as required by the Section 151 Officer. A zero?based budgeting exercise had been undertaken, which concluded that the authority was likely facing a deficit in the region of £14 million due to increased demand pressures, higher than expected pay awards, and inflationary costs.

Directorates had been challenged to identify savings, as discussed at the previous Overview & Scrutiny meeting. Some progress had been made, supported by an improved government settlement and a £1.6 million movement relating to the Greater Manchester pension fund. The remaining budget gap now stood at £3.9 million, reflecting significant progress, although the overall challenge was becoming increasingly difficult, particularly given rising demand in adult and children’s social care and the increasing costs associated with meeting that demand. Work was ongoing to ensure that emerging pressures did not undermine the Council’s future financial resilience.

The Chair, Councillor Vernon, noted that a substantial portion of the budget had been considered in December and acknowledged the delayed publication of the papers. The Director of Finance explained that the timing of the meeting had contributed to this, with Cabinet papers being published first, and confirmed that meeting cycles would need reviewing. Significant detail within the government settlement also required further analysis.

Councillor Birchmore asked questions regarding the highways budget (page 135), specifically the amount allocated for road resurfacing and the reason £9.5 million had been rephased. She also asked whether any staff redundancies were planned for the forthcoming year. Councillor Thorpe confirmed that project delivery was expected toward the latter part of the budget window, highlighting a maintenance allocation of £2.549 million,  He confirmed that no redundancies were planned, although reductions in agency staffing, improved management of sickness absence and exploring different ways of working would contribute to savings.

Councillor Moss raised a question about financial risks linked to school academisation. Councillor Thorpe explained that it was now easier to predict which schools might convert, with only a small number still outside trusts. Catholic and Church of England schools were under no pressure to academise, and any deficits would return to the Council upon conversion. He noted that a school could move between surplus and deficit within a year. The Director of Finance added that the Council had a clear understanding of school?related financial risks, particularly through services traded with schools, and confirmed that the Commercial Board monitored risks to ensure services remained cost?effective. Councillor Thorpe added that financial planning depended heavily on pupil numbers.

Councillor Moss also asked about the projected decline in reserves over the next three years and noted the absence of reference to the budget stabilisation reserve. Councillor Thorpe explained that the reserve covered both budget and business stabilisation but would not be sufficient to close the gap on its own. Detailed  ...  view the full minutes text for item 91