Decision Details

Lorraine Rogers

Chief Finance Officer

lorraine.rogers@eastsuffolk.gov.uk

1. That the following be approved for review and consideration by the Scrutiny Committee as part of the budget process: 
a. The draft HRA budget for 2024/25, and the indicative figures for 2025/26 to 2027/28; 
b. Movements in HRA Reserves and Balances; 
c. Proposed rent increase of up to 7.7%. In line with the Rent Standard 
September 2023 CPI + 1%. 
d. Service charges and associated fees for 2024/25; 
e. Rent and Service Charges to be charged over a 51-week period unless 
being used for Temporary Accommodation when a 53-week period will be applied, due to 2024/25 being a 53-week year. 

2. That the following be noted: 
a. Projected outturn position for 2023/24; 
b. Changes affecting public and private sector housing and welfare; 
c. Effects of the cost-of-living crisis to the HRA. 

1. To bring together all relevant information to enable Members to review, consider and comment upon the Council’s Housing Revenue Account budgets, the proposed rental increase, service and other charges and movements in reserves and balances, before making final recommendations to Full Council on 21 February 2024.

2. To form the basis of Scrutiny Committee’s review of the Budget at its meeting on 18 January 2024 as required under the Budget and Policy 
Framework.

3. To advise Members of the wider housing and welfare changes that will impact on future service delivery.

1. The Housing Revenue Account Budget forms part of the Council’s Budget and Policy Framework. The Council is required to set an annual budget and therefore no other options were considered.

2. Following four years of compulsory rent reduction, setting rents from 2020/21 below the maximum permitted under the Rent Standard is not recommended. However, the 2023/24 rents were set 1% below the Government cap of 7% to help alleviate financial pressures on our tenants. From 2024/25 it is not recommended to repeat this to ensure financial sustainability within the HRA. 

The budgets work on the assumption of increasing rents by the September Consumer Price Index + 1% as per the Rent Standard. Government have not yet released any statements about imposing another rent cap, or how rents are to be set from 2025/26.