Issue - meetings

To submit a report by the Director of Function (Resources)/Section 151 Officer.

It was resolved to note the following –

·      The position set out in respect of the financial performance of the Housing Revenue Account (HRA) for Quarter 2 2023/24.

·      The forecast outturn for 2023/24.

The report of the Director of Function (Resources)/Section 151 Officer setting out the financial performance of the Housing Revenue account for Quarter 2 2023/24 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance presented the report which outlines both the revenue and capital budget performance of the Housing Revenue Account for the period and the forecast outturn for the year ending 31 March 2024. The report shows the revenue budget with a budgeted surplus of £8,044k. The gross capital budget for 2023/24 is £19,988k. Grant and other funding of £6,898k reduced the net budget to £13,090k. The combination of both the revenue budget and the adjusted capital budget gave a planned budget deficit of £5,046k to be funded from the HRA reserve. The HRA revenue budget shows an underspend at the end of the second quarter of £600k compared to the profiled budget as detailed in Appendix A to the report. Capital expenditure is £940k above the profiled budget at the end of the quarter. The forecast expenditure is £1,890k above budget at year end as detailed in Appendix B to the report.  The forecast deficit combining both revenue and capital is now £4,702k, £343k less than the budget.

The opening balance of the HR reserve stood at £12,107k. The revised budget allowed for the use of £5,046k of this balance. However the revised forecasts as reported will only use £4,702k. This will give a reserve balance of £7,405k by the end of the financial year. This balance is ringfenced and is only available to fund future HRA expenditure.

The Director of Function (Resources)/Section 151 Officer emphasised the status of the Housing Revenue Account as separate from the Council’s General Fund with its income derived from the rents on the housing stock and not from Welsh Government grant. Any surplus income is reinvested in upgrading and maintaining the existing stock to Welsh Housing Quality Standards and balances from the HRA reserve fund which have been built up over a number of years are used to fund capital expenditure. The HRA can also borrow to invest in developing new council housing. The HRA is in a robust position and is generating surplus income thereby enabling it to re-invest funds and to use borrowing powers to support further housing development in line with the strategy contained within the HRA Business Plan.  Appendix C to the report details the housing units planned and/or in development and the development budget for 2023/24.  

It was resolved to note the following –

·      The position set out in respect of the financial performance of the Housing Revenue Account (HRA) for Quarter 2 2023/24.

·       The forecast outturn for 2023/24.