Issue - decisions

Noted that the forecast 2024/25 closing balance position of the Housing Revenue Account (HRA) is to reduce to £4.7m as a result of the Q3 2024/25 projected overspend of £3.1m, which would take the HRA very close to its minimum working balance of £4.0m (section 4.1 of the report)

Noted that decisions 1.3 - 1.8 of the report still leave a forecast Minimum Working Balance deficit for 2025/26 and therefore in order to ensure that balances are deemed adequate, no HRA voluntary Minimum Revenue Provision (MRP) will again be provided in 2025/26, resulting in both a balanced budget and adequate Minimum Working Balance. The Treasury Management and Capital Strategy report refers to this in more detail (Cabinet 17 February 2025).

Agreed to follow the national rent policy, as set out in the Rent Standard, and to approve an increase in rents for social homes by 2.7% (September's CPI + 1%), the maximum allowed by government. This will increase the average weekly rental charge by £2.97 to an average rent per week of £112.93.

Agreed to increase Tenant Service Charges for council homes by 2.7%, resulting in an increase of 47p per week. This will increase the average service charge to £17.72.

Agreed to increase garage rents by £1 a week, equivalent to between 7% and 9% depending on garage tier (section 4.6.2 of the report)

Noted that even with these proposed increases, the HRA will still be under significant financial pressure.

Agreed the following proposals, which address the financial pressure on the HRA (section 4.7 of the report).

·        To rephase the last 10% of spending (£40m of £400m) on the Capital Programme so it finishes in 2030/31 rather than in 2028/29.

·        To extend the current policy of allowing relets at formula rent +5% for five further years from 2026/7.

·        To review funding the two tenant management organisations (Walpole and River Heights), noting their high costs compared to other social homes.

·        To convert some of the planned council home building under the Greenwich Builds programme to acquisitions of high quality new-build homes, resulting in a cost saving and an increase in new housing delivery. To note that we will continue to deliver a programme of new Council housing supply through a combination of direct delivery (Greenwich Builds) and bulk acquisitions

·        Where possible, to use GLA grant instead of Right To Buy Receipts (RtB), and where GLA grant is earmarked for construction to flip this to acquisitions.

·        To convert to convert an additional 100 homes which become void for use as temporary accommodation, in order to reduce the use of unsuitable hotel accommodation for residents in temporary accommodation.

·        To agree the rent changes from 7 April 2025 for TA properties, as set out in 4.6.2.  This decision will impact both HRA and General Fund TA properties.

Agreed to funding of £200,000 for the Hardship Fund in 2025/26, to support tenants in financial difficulty (section 4.8 of the report)

Noted the financial risks and mitigations in section 4 of the report, including the deficits highlighted in section 4.2 alongside the comments of the Director of Resources.

Noted that the report was presented to the Overview & Scrutiny Committee on 30 January for pre-decision scrutiny, and they provided no comments to Cabinet.