Issue - meetings

To consider the report of the Director Finance.

Agreed:

RECOMMENDED that Council note and approve (where applicable):-

(1)   the HRA forecast financial position for 2022/23 financial year; and

(2)   the revision of the HRA Capital Programme to reflect the reported variations detailed in Appendix 4.

Reason for Decision: As set out in the report.

The Executive received the report on the financial position of the HRA Revenue and Capital Budgets for the 2022/23 financial year after three months and the reported budgetary over/under-spend. The report further highlighted areas of risk, where certain budgets had been identified as being vulnerable to factors beyond the control of the Council, which may result in potential deviations from the budget, and were being closely monitored by officers.

The Director Finance explained that the pay award was expected to be £138,000 over budget and the anticipated additional energy budget for the next financial year would be £350,000, which equated to around half a million pounds in cost pressures.

The HRA interest rates would impact on borrowing for new properties, which would be reviewed by the housing team. Maintenance to existing properties was generally managed by the housing financial resources and therefore not reliant on borrowing. HRA interest received, would be higher due to receiving more from the General Fund but there were no other significant movements to report.

In response to a Member’s question, the Director Finance clarified that the HRA had previously borrowed £15 million at a fixed low rate, which had a low risk to social housing. Future planning would be re-assessed by the finance team to address the 3% interest rate increase.

RECOMMENDED that Council note and approve (where applicable):-

(1)   the HRA forecast financial position for 2022/23 financial year; and

(2)   the revision of the HRA Capital Programme to reflect the reported variations detailed in Appendix 4.