Issue - meetings

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

It was resolved to note the position set out in respect of the financial performance of the Housing Revenue Account (HRA) for 2023/24.

The report of the Director of Function (Resources)/Section 151 Officer setting out the financial performance of the HRA for the period April 2023 to March 2024 was presented for the Executive.

The report was presented by Councillor Robin Williams, Deputy Leader, and Portfolio Member for Finance who reported that the revenue budget had a budgeted surplus of £8.044k. The gross capital budget for 2023/24 was £19,988k with grant and other funding of £6,898k reducing the budget by £13,090k. The combination of both the revenue budget and adjusted capital budget gave a planned budget deficit of £5,046k which would be funded form the HRA reserve.

The actual HA revenue surplus of £8,727 exceeds the budgeted level of surplus by £683k as detailed in Appendix A to the report. Capital expenditure was underspent by £182k at out-turn as detailed in Appendix B. Grant income was £801k above the budget with other contributions £538k below the budget. At out-turn the net capital expenditure was underspent by £44k. An additional £509k was received from the joint equity sale of 4 dwellings which has been transferred to an earmarked reserve. The deficit combining both revenue and capital at out-turn was £3,918k, £1,127k less than the budget which leaves £8,189k as the closing HRA Reserve balance. The balance is ringfenced and only available to fund future HRA expenditure.

The Director of Function (Resources)/Section 151 Officer referred to the HRA strategy as set out in the HRA 30-year Business Plan as being to utilise HRA revenue surplus as a contribution towards capital expenditure to maintain the current stock to WHQS standards with the HRA reserve being used to fund the development of new homes. As the HRA reserve reduces to the level agreed in the Business Plan which is approximately £1m to £1.5m, borrowing will be undertaken to continue the building process and the costs funded from the income from the new homes already developed.

It was resolved to note the position set out in respect of the financial performance of the Housing Revenue Account (HRA) for 2023/24.