Housing Revenue Account (HRA) Business Plan 2024-2054
Introduction
1.1 The Housing Revenue Account (HRA) is the financial account used to manage the council's activities as a landlord. It is a ring-fenced account and can only be used to provide services to council housing tenants through the collection of rent and other service charges.
1.2 The HRA Business Plan is a key strategic document which sets out the council's income and expenditure plans for delivering Council Housing Services in Gateshead.
1.3 This refresh of the plan is set against a backdrop of an extremely challenging financial situation. Increased pressures arising from new regulatory requirements, prioritisation of the decarbonisation of social housing and the expectation of more new development from councils. At the same time, costs have experienced rapid inflation compounded by a series of economic shocks.
1.4 As this is a 30-year plan, assumptions become more uncertain with each year of the plan. The primary risks are in relation to future inflation and interest rates, however, the most up to date forecast information has been used in the preparation of the plan.
1.5 Overall, the revised HRA Business Plan is a fully costed, sustainable plan and does not breach the minimum £3 million reserve balance during the life of the plan (30 years). The plan requires as a minimum efficiency savings over the medium term of £3.823 million with a requirement for this to be front loaded with £1.604 million required in 2025/26.
1.6 Whilst the borrowing is affordable within this plan, debt needs to be managed in the overall context of affordability for the council. The risks associated with borrowing will therefore need to be kept under review.
1.7 However, to accommodate the stock investments and associated cost implications borrowing would increase to £1.006 billion by year 30 which is £660.037 million higher than the current debt and £250.547 million more than the increase estimated in February 2024 to the then year 30. Additional borrowing will start to accrue in year 2 of the plan rather than year 3 as it would be now.
1.8 This plan should be read in conjunction with the other key housing strategies and policies which set out how the above ambition can be achieved.
Download Housing Revenue Account (HRA) Business Plan 2024-2054 as a PDF (PDF, 2 MB)