Agenda item

Housing Revenue Account - MTFP 2022-23 to 2025-26

Report of the Group Director of Operations



The Group Director of Operations submitted a report (previously circulated) requesting that consideration be given to proposals for the revenue budget, capital programme, rent levels and service charges for the Council’s Housing Revenue Account (HRA) for the financial year 2022/23, in the context of the HRA Medium Term Financial Plan to 2025/26, and the 30 year Investment Plan, following consultation with Council tenants.


The submitted report stated that the Council was the largest provider of social housing in the borough, providing 5,275 homes to local residents, and outlined the ambitious programme to build new Council houses in Darlington. It was reported that the new build Council housing programme was funded through capital receipts from right to buy sales, grant funding from Homes England and through estimated borrowing of £15m.


The submitted report set out the key decisions for the HRA for 2022-23, which included proposed revenue expenditure of £25.448m, and a proposed capital programme of £32.98m.


It was stated that Councils had the discretion to increase rents each year by the Consumer Price Index (CPI) plus 1%, which means for 2022-23 Members had the option to increase rents by up to 4.1%. Consideration was given to a 4.1% increase, a 2% increase, and a zero increase, and taking into account the current economic pressures facing tenants and balancing this with the need to deliver the Council’s ambitious capital and energy efficiency programmes, it was determined that an increase of 2% was to be recommended, or an average of £1.64 each week.  It was also recommended to increase service charges by an appropriate inflationary amount.


RESOLVED - (a) That an average weekly rent increase of 2% for 2022-23 be implemented, giving an average social rent of £75.01 and affordable rent of £92.06.


(b) That garage rents and service charges are increased as shown in Table 1 of the submitted report.


(c) That the Revenue budget, as appended at Appendix 1 of the submitted report, be approved.


(d) That the Housing Business Plan, as appended at Appendix 2 of the submitted report, be agreed.


(e) That the capital programme, as appended at Appendix 3 of the submitted report, be approved and released.


(f) That the Group Director of Operations be given delegated powers to proceed with new build schemes using the funding, as identified at paragraphs 23-25 of the submitted report.


REASON - To enable the Council to deliver an appropriate level of services to tenants to meet housing need and to support the economic growth of the Borough through housing development.


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