Issue - meetings

To submit the report of 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 quarter 3, 2024/2025;

·         To note the forecast outturn for 2024/2025.

The report of the Director of Function (Resources)/Section 151 Officer setting out the financial performance of the Housing Revenue Account (HRA) Budget for Quarter 3 2024/2025 was presented for the Executive’s consideration.

Councillor Robin Williams, Deputy Leader and Portfolio Member for Finance and Housing Services presented the report which sets out the financial performance of the Housing Revenue Account (HRA) for the period 1^st April, 2024 to 31^st March, 2025 comprising of both the revenue and capital expenditure.  He highlighted that the HRA is ‘ring-fenced’, and its reserves cannot be used for purposes other than to fund costs relating to the Council’s housing stock including the development of new housing.  The revenue budget was set with a budgeted surplus of £8,369k.  The gross capital budget for 2024/2025 is £29,573k.  Grant funding budget of £10,578k and £509k earmarked reserve balance reduces the net budget to £18,485k.  The combination of both the revenue budget and adjusted capital budget gave a planned budget deficit of £10,116k, of which, £7,011k is to be funded from the HRA reserve, with the balance of £3,104k to be funded by external borrowing. 

The Director of Function (Resources)/Section 151 Officer reported that the revenue expenditure shows an overspend of £38k as the rental income is lower than set out within the budget as new development were foresaw to be becoming available sooner within the financial year.  The maintenance element of the HRA is also dependent on demand for the service.  He noted that there has been an underspend of £2.9m as regards to keeping the current housing stock to WHQS standards.  The development of new houses and buying former social housing element has seen an overspend of £1.1m., as some projects have commenced earlier than planned. 

It was RESOLVED:-

·         To note the position set out in respect of the financial performance of the Housing Revenue Account (HRA) for quarter 3, 2024/2025;

·         To note the forecast outturn for 2024/2025.