housing revenue account business plan

Housing revenue account business plan

The Housing Revenue Account (HRA) Business Plan sets out the priorities, plans and actions for council housing over the next 30 years. The HRA Business Plan was revised in September 2014 to include 2014/15 figures and identify new priorities. A further revision is due to be published in September 2017. You can also download the associated Housing Capital projections .

Its purpose is to show that we can maintain our housing assets and deliver a quality customer-focused service, as well as improve homes and neighbourhoods.

Reasons for a business plan

An effective HRA Business Plan has become evermore crucial since central government announced the reform of the rules governing local authority housing finance and the introduction of the self-financing system .

This new system requires local authorities to take on a one-off debt, in York's case £121.5 million, and in return keep all its revenue income. A proportion of Right to Buy receipts are still pooled and returned to central government.

It is crucial that the HRA continues to be managed on sound business principles.

The reforms open up some exciting opportunities for York to play a pivotal role in not only developing much needed social housing, but also in growing the city's economy.

Demand for social housing in York remains high, particularly for larger family homes, and this plan sets out our aspiration to build new council housing of the types required.

Aims of the business plan

The business plan sets out the investment required to:

• maintain our housing stock to continue providing good quality, sustainable council homes which meet a range of needs for today and for future generations
• achieve and maintain high standards of housing management and effective tenant involvement
• assist people in housing need to access social housing
• support vulnerable tenants in maintaining their tenancy and living independently
• respond to and pre-empt changing demand patterns by maintaining a balanced portfolio of housing which addresses a wide range of needs
• increase the environmental sustainability of our housing stock

We aim to deliver the investment programme in a cost effective manner, in accordance with sound procurement principles.

• Council homes
• Affordable homes
• Housing tenancy strategy
• Supported housing strategy

Housing Options

Telephone: 01904 554500

Email: [email protected]

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Housing Revenue Account

Information and advice on the Housing Revenue Account (HRA) and consents for disposal of land from the Housing Revenue Account.

Applies to England

1. overview.

The Housing Revenue Account ( HRA ) is intended to record expenditure and income on running a council’s own housing stock and closely related services or facilities, which are provided primarily for the benefit of the council’s own tenants.

The main features of the HRA are:

it is a landlord account, recording expenditure and income arising from the provision of housing accommodation by local housing authorities (under the powers and duties conferred on them in Part II of the Housing Act 1985 and certain provisions of earlier legislation)

it is not a separate fund but a ring-fenced account of certain defined transactions, relating to local authority housing, within the General Fund

the main items of expenditure included in the account are management and maintenance costs, major repairs, loan charges, and depreciation costs

the main sources of income are from tenants in the form of rents and service charges

the HRA should be based on accruals in accordance with proper accounting practices, rather than cash accounting

Legislative features are:

• ring-fenced account within the General Fund
• Credits and Debits are prescribed by statute
• no general discretion to breach the ring-fence
• cannot budget for a deficit
• all borrowing within the HRA is in line with the CIPFA Prudential Code

2. Who is required to hold an HRA ?

Any local housing authority that owns 200 or more social dwellings are required to account for them within their HRA .

‘Local housing authority’ means a district council, a London borough council, the Common Council of the City of London, a metropolitan borough council, a unitary council, or the Council of the Isles of Scilly.

County councils, where they are part of a two-tier system, parish councils and town councils are not local housing authorities.

Any local authority that owns fewer than 200 social dwellings does not need to account for them in an HRA , however conditions do apply. Please see section 5 .

3. How to open an HRA

The account will be maintained and monitored through a local authority’s existing accounting channels. You do not need to have permission granted by the Secretary of State to open an HRA , however the Ministry of Housing, Communities and Local Government requests a letter to the Secretary of State declaring the intention to open an HRA .

4. Building in the HRA

If a local authority already has housing stock held in an HRA , they are free to borrow in line with the Prudential Code, to get building the council housing that their community needs.

5. Accounting for social housing in the General Fund

A local authority may hold up to 199 homes outside the HRA under Direction, so local authorities that have previously transferred their stock to a housing association, or that retain very low levels of council housing, may borrow prudentially through the General Fund to get building.

Once the 200 home threshold is reached, a local authority must open an HRA and may borrow prudentially to continue their building within the HRA .

Local authorities planning to build outside the HRA must write to the Secretary of State for Housing, Communities and Local Government to apply for a direction that permits these homes to be held outside the HRA ; this is usually a formality, though in some instances there is a duty to consult.

Any council dwellings that are built outside the HRA must be covered by a direction.

To get a direction, please email [email protected] .

• See the HRA flowchart ( PDF , 154 KB , 3 pages ) to determine options for your local authority.
• Accessible version: HRA flowchart accessible version ( PDF , 69.1 KB , 1 page ) .

6. Operation of the Housing Revenue Account ring-fence

On 10 November 2020 MHCLG published guidance on the operation of the Housing Revenue Account ring-fence . This guidance updates and replaces Circular 8/95 published by the former Department of the Environment (DoE). It gives advice to local housing authorities in England on certain aspects of the HRA .

This guidance restates ministers’ established policy for the HRA and introduces no new issues of principle. However, it does highlight the need to be fair to both tenants and council taxpayers and that there should be a fair and transparent apportionment of costs between the HRA and General Fund.

7. Removal of the HRA borrowing cap

On 29 October 2018, the government confirmed that the HRA borrowing cap was abolished with immediate effect.

As a result, local authorities with an HRA are no longer constrained by government controls over borrowing for housebuilding and are able to borrow against their expected rental income, in line with the Prudential Code.

The abolition of the borrowing cap also benefits local authorities that wish to build council housing but do not have an HRA .

Such authorities are able to borrow in line with the Prudential Code to build up to 200 council homes, subject to requesting a Direction from the Secretary of State allowing them to account for these homes outside the HRA . Once they build 200 homes they need to set up an HRA .

Previously, at this stage, authorities in this position would have faced a cap on their borrowing. The level of this cap would need to take account of the relatively small numbers of homes held by the authority and the low level of debt that could be supported. However, such authorities no longer face this barrier.

Local authorities that decide to reopen their HRA to build more homes, will be able to borrow in line with the Prudential Code, in the same way as all other local housing authorities.

8. HRA legislation

• Housing Act 1985 (Part II)
• Housing Act 1988
• Local Government and Housing Act 1989 (section 74)
• Local Government Act 2003
• Localism Act 2011

Credits and Debits to the HRA (including item 8 determinations)

• Housing Revenue Account: Item 8 Credit and Item 8 Debit (General) Determination

Calculating the HRA capital finance requirement

• Limits on Indebtedness Determination 2012
• Limits on Indebtedness (Revocation) Determination 2018

Self-financing settlement

• Housing Revenue Account self-financing determinations
• Limits on Indebtedness Determination 2012, Determination 2013, and Amending Determination 2013

Accounting practices

• Housing Revenue Account (Accounting Practices) Directions 2016

9. Consents

If a local authority wishes to dispose of land or property, or provide financial assistance in connection with housing, they may require the consent of the Secretary of State in accordance with various sections of statute.

Registered providers and others that have land that formerly belonged to a local authority, and wish to dispose of it, or want to acquire such land or housing may also require the consent of the Secretary of State.

Some disposals or transfers of housing land are now covered by General Consents in which cases the Secretary of State’s consent has already been given and individual applications to the Secretary of State are not required.

If a local housing authority requires a specific consent they will need to apply by completing an application form for the relevant consent and send to [email protected] .

The authority must complete the form setting out their proposals, supported by a strategic and economic justification for the disposal and/or financial assistance.

The most frequently used consents are described below. This is for information, it is the responsibility of the local authority to seek their own legal advice.

• General consents
• Frequently used specific consents
• Application process

A. General consents

General consents are intended for local authorities to dispose of or appropriate land or property without the need to individually come to the Secretary of State for approval.

There are general consents issued under various sections of housing legislation that allow disposal of land or property for its best consideration and where no secure, introductory or demoted tenants are impacted.

If the circumstances of a particular case meet all the criteria set out in one of the general consents, then the local authority may proceed with the disposal without formal application to the Ministry of Housing, Communities and Local Government ( MHCLG ).

There are no general consents issued under section 12, section 19 or section 43 of the Housing Act 1985.

MHCLG is currently considering whether the general consents can be extended to cover more routine applications.

• General housing consents under section 32 of the Housing Act 1985

B. Frequently used consents under the Housing Act 1985

Part II of the Housing Act 1985 contains the basic powers under which local housing authorities provide housing accommodation for people in need.

Sections 32-34

General consent: This general consent gives local authorities the power to dispose of land held for the purposes of Part II housing (broadly speaking social housing) at market value without the consent of the Secretary of State. Subject to some discrete exceptions.

Specific consent: However, if a local authority wants to dispose of land at less than best consideration they will need to ask the Secretary of State for permission. Consent might also be needed from the Secretary of State when selling a house occupied by a secure tenant or disposing of more than 5 disposals in a financial year to a company wholly or part owned by a local housing authority (a local housing company).

• HRA application form s25, s32 & s43 ( MS Word Document , 53 KB )

This requires local authorities to seek consent from the Secretary of State to provide and maintain facilities in connection with housing accommodation held under Part II. This could be a recreation area which is part of a social housing estate or a building for use as a shop connected to the estate.

• HRA application form s12 ( MS Word Document , 47.5 KB )

Appropriation enables the local authority to take the dwelling out of the Housing Revenue Account. Local authorities are required to seek consent from the Secretary of State to appropriate Part II land which has housing on it (even part of a housing unit).

Local authorities were already allowed, under section 122 of the Local Government Act 1972 , to appropriate any land which is no longer required for the purpose for which it is held.

Section 19 of the Housing Act 1985 makes an exception to that, and local authorities should apply for this consent if they wish to appropriate land which contains housing property from Part II to any other purpose.

• HRA application form s19 ( MS Word Document , 48.5 KB )

Consent under section 43 of the Housing Act 1985 is required for the disposal of a dwelling which is held under powers other than Part II of the Housing Act 1985 and which is subject to a secure tenancy or a right to buy lease.

Such properties are rare, but an example might be a house which was acquired under Highways Act powers for a road scheme which was subsequently cancelled.

C. Frequently used consents under the Local Government Act 1988

Section 24 of Local Government Act 1988 empowers a local housing authority to provide any person with financial assistance for the purposes of, or in connection with, the acquisition, construction, conversion, rehabilitation, improvement, maintenance or management of any property which is or is intended to be privately let as housing accommodation.

To use these powers, local authorities may need to seek the Secretary of State’s consent under section 25 of the act. Section 26 sets out matters which the Secretary of State is to take into account in considering the application.

General consent: The general consents under section 25 allow local authorities to sell to anybody at market rate, where the new owner will provide the housing at social or affordable rent. There are various general consents under section 25, local authorities should use their own legal advice to determine which one applies.

Specific consent: If the local authority wants to dispose of vacant land at less than market value, even if the total return is greater (if, for example, more homes are provided on the land) the local authority should apply for a consent from the Secretary of State. A local authority should seek consent for anything not covered by the general consents.

D. Frequently used consents under the Housing Act 1988

Section 133.

A specific consent under section 133 may be required for onward sale of Right to Buy homes where it has been mentioned in the register of title.

Where consent for a disposal was originally required under section 32 or section 43 of the Housing Act 1985 the person acquiring the land or property needs the consent of the Secretary of State under section 133 of the Housing Act 1988 to dispose of it (unless the General Consents 2013 and General Consents correction slip 2013 applies).

• HRA application form s133 ( MS Word Document , 46.5 KB )

E. Frequently used consents under the Local Government Act 2003

Section 11(6).

Section 11(6) permits the Secretary of State to enter into agreements with local authorities to exclude specified Housing Revenue Account properties from the requirement that, should the home be sold under the Right to Buy, a proportion of the receipt be surrendered to central government.

• Exemptions from the regs application form ( MS Word Document , 89 KB )
• s11(6) agreement template ( MS Word Document , 45 KB )

F. Specific consents

If the circumstances of a case do not meet the general consents’ criteria, or any of the other sections above, there is the option for the local authority to seek the Secretary of State’s specific consent by writing to [email protected] .

The most commonly used application forms can be found in the relevant sections above.

G. Application process

MHCLG aims to issue a letter granting specific consent, within 20 days of receipt of the application for section 32, section 43, section 12, section 19 and section 25 and within 25 days for section 133, assuming that there are no significant concerns with the application.

• See the Diagram of the consents process ( PDF , 14.5 KB , 1 page ) for an overview of the process.
• Accessible version: Diagram of the consents process accessible version ( PDF , 80.1 KB , 1 page ) .

For any further queries on consents, please contact [email protected] .

10. Consents legislation

• General housing consents 2013: section 32 of the Housing Act 1985
• General consents under section 25 of the Local Government Act 1988 (Local authority assistance for privately let housing)

11. Discretionary Housing Payments

Local housing authorities can apply to the Ministry of Housing, Communities and Local Government for an Item 9 Credit and Item 10 Debit Direction if they want to make Discretionary Housing Payments ( DHP ) available to their own tenants through the Housing Revenue Account ( HRA ).

The Local Government and Housing Act 1989 sets out the accounting framework for the HRA . As there is no express provision relating to the funding of DHPs from the HRA , MHCLG is prepared to issue Directions to put the matter beyond doubt for individual authorities. Funding remains subject to the Department for Work and Pensions rules and limits.

A local housing authority can apply by sending an application to [email protected] .

Updates to this page

Added section on Operation of the Housing Revenue Account ring-fence.

Added section 10 on Discretionary Housing Payments.

First published.

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• Strategies, Plans and Policies
• Housing Strategies
• Housing Revenue Account Business Plan

Our long term plan for Council Homes

Our Housing Revenue Account Business Plan 2022-2052 is the result of a long period of work and marks the next step in our housing improvement journey.

The business plan sets out how the available funds for the Council to maintain and improve its council homes will be spent, showing that the Housing Revenue Account is sustainable with resource management. It also recognises that, like any business plan, it is vulnerable to factors such as inflation.

This plan focuses on health and safety, which must always be our priority, and sets out how the council can keep its focus on meeting the decent homes standard across our stock. There are also housing improvements that are a matter of choice, cost and prioritisation within the remaining budget available. The policy recommendations within the business plan sets out our approach to these things.

In developing our plan we have listened to our tenants and are grateful for the work and support of our scrutiny committee who have helped shape the plan through its development. Our plan will be updated annually, and we are committed to do all that we can to deliver excellent homes and landlord services for Melton. 

The Business Plan is supported by:

• Affordable Housing Development Plan
• Tenant and Leaseholder Engagement Framework
• Asset Management Plan (in development)

You can find these supporting documents, along with the Housing Revenue Account Business Plan, in the download section below.

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Financial information

This section contains financial information including the Statement of Accounts, Pay Policy, Council Tax, Parking Account and expenditure over £ 500 .

Housing Revenue Account business plan

The Housing Revenue Account (HRA) is a ring-fenced account separate from the council’s General Fund that contains the income and expenditure relating to the management and maintenance of Lambeth’s housing stock.

Since the move to self-financing the council is required to maintain a 30-year business plan of which this is the most recent summary position. It is important to understand that this is a constantly evolving model and work is currently underway to update this as we await final information on a number of issues that impact on housing finance and as we work towards delivering a balanced HRA by identifying opportunities for efficiencies and savings.

Download HRA_ 30 _Year_Business_Plan_-_Baseline_ 2022 - 23 .xlsx vnd.openxmlformats-officedocument.spreadsheetml.sheet   1.28 MB

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Housing revenue account business plan

The Housing Revenue Account is a ring-fenced account within the council which is used for all transactions relating to Cheltenham’s council homes. All of the income generated from these council homes has to be kept in the Housing Revenue Account and used for the purpose of maintaining and investing in existing homes, building new homes and delivering services to tenants and leaseholders.

The aims and priorities over the next five years, set out in this business plan, are modeled over a 30-year term to understand the financial impact of the investment aspirations within this plan and to ensure that the HRA remains financially viable. The assumptions within the model are updated annually as part of the budget setting process. This financial model is also used to stress test the HRA to understand the key financial risks which need to be managed in both the medium and long term to ensure the HRA remains viable.

Current Context

The UK is faced with the most significant cost-of-living crisis in a generation. Inflation in 2022 has increased to 11.1%, the Bank of England base rate has increased from 0.1% to 3.5% with further increases expected in 2023 and energy costs have soared for both consumers and businesses.

Excess cost inflation, increased interest payable, energy costs and additional compliance expenditure have added £1.8m to the HRA cost base in 2023/24 compared to the 2022/23 budget prior to other year on year changes of £0.7m resulting in an overall expenditure increase of £2.5m. Whilst rental income will be increasing it has been capped at 7% for 2023/24 resulting in the estimated net operating surplus in the HRA falling from over £1m to £70,800 in 2023/24.

The long-term impact of this high inflation and capped rent is substantial on the 30-year outlook with capacity in the HRA reducing by an estimated £92m.

This reduced capacity in the HRA means the scale and pace of investment in existing and new homes needs to be carefully managed to ensure that vital services to customers and communities are protected. To deliver growth and maintain long term financial viability, additional sources of revenue need to be secured including building or acquiring new homes for rent, additional revenue and capital grant funding and through CBH exploring new opportunities for commercial income such as private rented homes (as noted in the aims above).

Investing for the next 5 years

The priorities for the next five years demonstrate the council’s commitment to Cheltenham residents and communities during this volatile and challenging period through its continued investment over the medium term in improving existing homes, supplying new homes and investing to make Cheltenham net zero carbon whilst providing immediate support during the cost-of-living crisis.

Over the five years of this business plan the council is proposing to invest £225m in these priorities as set out below.

• Increase delivery of affordable homes including new net zero homes - £97m
• Improve existing homes including investment to make homes net zero - £64m
• Provide homes that are safe and well maintained - £30m
• Provide efficient and accessible housing services - £21m
• Support strong and socially sustainable communities - £21m

Funding and Financial Viability

Whilst the impact of inflation, the rent cap, interest rates and compliance changes have had a substantial impact on the capacity of the HRA over the medium to long term, it is still important to invest in existing and new homes and the customer focused services which are essential for the support of our communities in this most challenging of times.

The significant level of capital investment proposed within this plan will be financed by a combination of borrowing, grant funding, shared ownership sales and capital receipts. To deliver this substantial investment, the level of debt within the HRA will be higher at its peak and need to be serviced and repaid over a longer period than previously projected. This brings its own risks which need to be carefully managed over the short to medium term to ensure viability over the long term.

The following parameters are used as measures to determine viability of the 30-year plan for modelling purposes:

• The minimum revenue reserve balance of £1.5m is the level approved by council and equates to approximately £330 per property
• Being able to afford the capital programme and therefore ensuring the existing homes are maintained for the long term is a key principle for all Local Authority’s with housing stock.
• The interest cover percentage is used to determine how easily the HRA can pay the interest expense on outstanding debt.
• Since the abolition of the HRA debt cap in October 2018 the council has been able to set its own prudential limits on HRA borrowing, rather than rely on the cap specified by Government. The HRA’s ability to repay borrowing over a reasonable period is a key factor when deciding whether a proposal to borrow for HRA purposes is a prudent decision

Throughout the 30-year plan period the HRA revenue reserve is maintained at or above the £1.5m minimum level and the capital programme for existing homes remains affordable.

As can be seen below, interest cover falls below 125% in the short term due to increased costs from high inflation and then starts to rise as new homes and consequently rental income are added to the HRA.

Debt is estimated to peak at £234m in the medium term, mainly due to the investment in new homes, and then starts to fall as additional rental income and careful cost management increases the net operating margin and allows for repayment of this debt.

These current projections show that the parameter relating to the repayment of debt does not meet the target of 50% of peak debt at the end of the plan period. This is due to the current financial pressures on the HRA including high inflation and the rent cap for 2023/24. This is considered necessary to allow for the continued investment in essential services and new homes as set out in this business plan. Careful monitoring will be undertaken to ensure that the scale and pace of delivery does not risk long term viability.

Key Assumptions

The budget for 2023/24 and projections for the following four years are underpinned by a number of key assumptions which are set to estimate future income, expenditure and capital investment. These assumptions take account of the current operating environment and state of the UK economy. Due to the current volatility in the UK and international economies these assumptions will be updated each year and sooner if there are significant, unprojected changes. The key assumptions are set out below.

• Consumer Price Index (CPI) assumed to fall to 5.2% in 2023/24 and then return to the Government’s target rate of 2% in 2024/25
• Retail Prices Index (RPI) assumed to remain 1% above CPI throughout the plan period
• Following the rent cap of 7% in 2023/24, rent increases to return to CPI + 1% for 2024/25 and then reduce to CPI + 0.5% and then CPI thereafter (next review of Government rent policy due April 2025)
• Rent estimates assume a 1% void rate and 20 RTB sales annually and also reflect additional income from newly built homes and acquired homes
• Cost increases to return to CPI from 2024/25 onwards apart from building costs which track RPI until returning to CPI in the medium term
• Borrowing rates to average 3.65% in 2023/24 before falling to 3% per annum over the long term
• A refreshed assessment of the 30-year capital programme on major works and component replacement each year
• Minimum HRA revenue reserve balance to remain at £1.5m over the long term
• New fixed or temporary borrowing to be available as required throughout the life of the plan
• This is considered necessary to allow for the continued investment in essential services and new homes as set out in this business plan. Careful monitoring will be undertaken to ensure that the scale and pace of delivery does not risk long term viability

Additional funding sources

Sourcing and bidding for income generation features throughout the strategic aims and intentions of this business plan. CBH will need to consider the availability and access to relevant government funding to support HRA finances throughout the five-year period and be responsive to opportunities, including government funding, as they arise. CBH will lobby when needed to raise attention and focus to funding and income opportunities to support the delivery of this business plan, and ultimately for the benefit of customers and residents of Cheltenham.

Value for money

Demonstrating excellent customer services at the right cost is crucial and ensures the council and CBH are delivering value for money (VFM); it is about understanding the need to spend and managing that effectively to maintain strong core services and continue to achieve positive change and outcomes for our customers. This ensures the rent paid into the Housing Revenue Account (HRA) delivers high quality services whilst maintaining and improving existing homes and building more affordable homes.

Performance, satisfaction and costs are benchmarked against other housing providers in the sector with a target of first and second quartile performance and satisfaction whilst targeting costs at a median sector level.

CBH continues to look for ways of making services cost efficient and opportunities for additional income to increase the capacity of the HRA for investment and maintain long term financial viability.

Sensitivity analysis

The financial projections noted above summarise expenditure, investment, capital financing and borrowing in respect of council housing over a 30 year period, starting in 2022/23. This baseline position reflects the council’s best available data and assumptions and allows for inflationary pressures impact on budgets and programmes. It also assumes a continuation of existing rent policy on the part of the Government (CPI + 1%), after applying the 7% cap to the maximum rent increase for existing tenants in 2023/24. Alongside this baseline CBH have also modelled the effects of the following sensitivities:

• Inflation is higher than baseline in 2024/25 by 2% and 2025/26 by 1% also resulting in higher rent increases
• The government decides to impose a further cap on rent increases in 2024/25 of CPI –1%
• Interest rates are higher than baseline over the medium term
• The combined effects of the above sensitivities

These sensitivities reflect the effects of changes in economic factors and government policy that are outside of the council’s control, as a way of assessing some of the underlying risks associated with the projections.

Under all sensitivities the HRA is able to maintain the minimum reserve balance of £1.5m throughout the projections. All sensitivities cause peak debt to occur in 2032/33 and permit the council to be reducing debt year on year by the end of the 30 year period. The Inflation sensitivity increases both costs and income (primarily rents) over the medium term. Since income is greater than expenditure, this enables the council to maintain lower levels of debt. The rent cap sensitivity reduces the income generated from the baseline rent increase for 2024/25, causing the council to borrow more to deliver its capital programme and take longer to repay the debt. Similarly, the interest rate sensitivity requires the authority to pay more for its debt, reducing the ability of the HRA to repay debt early.

The combined sensitivity has more complex effects. Inflation is greater for both income and expenditure but allowing for an additional rent cap in 2024/25 means that the rise in costs is greater than the additional income generated, causing debt to rise to the highest level among the sensitivities tested.

Interest cover performance is weaker if costs rise without a compensating rise in income, or if income reduces. This is demonstrated clearly by the rent cap sensitivity, which shows the effects of income rising at a slower rate than costs in 2024/25. On the other hand, performance improves under the inflation sensitivity (which increases both costs and income) and the combined sensitivity (which allows for higher underlying inflation, so permits a larger rent increase in 2024/25 than under the rent cap sensitivity).

None of the sensitivities impact significantly on the ability of the HRA to maintain a minimum balance. The additional income generated (assuming no further rent cap) under the inflation sensitivity allows the authority to reduce HRA debt by £22m after 30 years and is beneficial. All of the remaining sensitivities require the authority to hold higher levels of debt, with the rent cap sensitivity having the greatest negative impact.

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Housing Revenue Account (HRA) Business Plan

Name of policies to be assessed, 1. what is the main purpose of the policies.

• This HRA Business Plan sets out our strategic plan for managing and maintaining our social housing stock.
• It details our short to medium term plans and priorities for the housing and asset management services (5 years) and provides a long term (30 year) forecast on stock investment and financial planning.
• It gives an economically sustainable strategy for which to go forwards, meeting the statutory health and safety requirements, improving the decency of homes, providing more homes and starting the journey towards carbon neutrality.
• Good framework from which to make decisions on a daily basis moving forwards, aligned with the Strategic Plan and Council priorities.

2. What main areas or activities does the policies cover?

• Sets out how the housing service is delivered, including what costs and how the finances will develop in the future.
• Defines priorities for investment and summarises the key risks with actions to mitigate these risks.
• Provides a framework for prioritising the delivery of new health and safety measures, the need for meeting demand for more social housing, keeping homes decent and addressing the challenges of energy efficiency and climate emergency.
• How we will meet the challenges and changes from the Government’s Social Housing White Paper through compliance works for building safety, electrical inspections, fire risk assessments and fire door inspections.
• The plan supports improvement of the energy efficiency of our properties, tackling fuel poverty and inequality in our stock so that tenants benefit from warmer homes at a lower cost where possible.
• Sets out our strategy to invest in a “fabric first approach” to insulate the poorest performing homes, before adding ever-improving technological solutions to reduce emissions from our stock to a zero net carbon level.
• Supports the delivery of our Asset Management Strategy (2022-2027), meeting the requirements to keep the stock decent and affordable considering future changes to the Government’s Decent Home Standard.
• The delivery of new social homes through new build or acquisition to ensure the Council continues to provide as many affordable homes as it can.

3. Are there changes to an existing policy being considered in this assessment?

4. who are the main audience, users or customers who will be affected by the policy.

• Council tenants and leaseholders
• Members of staff, CBC and CBH
• Colchester Borough Homes Board
• Councillors
• Residents of the Colchester City

5. What outcomes does the Council want to achieve from the policy?

• The housing stock represents CBC’s highest value asset(s) and repair and maintenance cost is the largest liability. The properties owned is worth many millions of pounds, either as capital assets or as revenue generating assets and therefore planning for its sustainable future is fundamental as part of the planning and investment arrangements.
• The new and revised Business Plan shows that the challenge of delivering changes to regulation and legislation following the Governments Social Housing White Paper can be delivered. There is significant new cost, these costs are all included in the revised Business Plan and include, fire safety, building safety, gas and electric safety and compliance.
• The investment priorities for keeping the stock decent over the next five years are included in the revised Business Plan. However, this may need to change when the government concludes its review of the Decent Homes Standard in Autumn 2022 and issues revised guidance

6. Are other service areas or partner agencies involved in delivery?

• Colchester Borough Homes
• Contractors delivering the programmes
• Planning Authority
• CBC finance and Legal Services
• Portfolio Holder and Members
• Building related consultancies

7. Relevant information, data, surveys or consultations

• Tenant and Leaseholder representation have been consulted through a task and finish group during the production of the strategy along with a short survey.
• Results from the STAR (Survey of Tenants and Residents) survey will be used to help formulate an action plan.
• Resident engagement to include more consultation is on-going to achieve our goals and aspirations in managing our assets.

8. The ‘general duty’

• eliminate unlawful discrimination, harassment and victimisation
• advance equality of opportunity between people who share a ‘protected characteristic 2 ’ and those who do not 3
• foster good relations between people who share a protected characteristic and those who do not 4
• The Business Plan facilitates arrangements to deliver more effectively to meet older customers and those with physical disabilities specialist needs. This could help reduce potential discrimination, harassment and victimisation by supporting adaptations within their homes and refurbishing sheltered accommodation.
• By providing housing to meet peoples needs they have the opportunity to make choices over the property they live in and where they live, promoting equality of access to housing.
• By giving people with protected characteristics choices over where they live they have the opportunity to participate in the activities of the wider community fostering good relations.

9. Disproportionate impacts

Age - older people (60+) and younger people (17-25), positive impact.

Through investment and ongoing improvements to housing stock and urban environment, providing housing that meets their needs.

Age - those who are typically in the age group 45-55

Disability – physical, sensory, learning, mental health issues, other, ethnicity - white; mixed or multiple ethnic groups; asian or asian british; black, black british, caribbean or african; other ethnic group, language – english not as a first language, pregnancy and maternity - women who are pregnant or have given birth in the last 26 weeks, religion or belief - people with a religious belief (or none), sex – men and women, gender reassignment - transgender/transsexual, sexual orientation – straight/heterosexual, gay or lesbian, bisexual, other sexual orientation, marriage and civil partnership - people who are married or in a civil partnership, 10. how negative impacts be minimised or removed, 11. could the policy discriminate 5 against any ‘protected characteristic’ either directly or indirectly, summary and findings of initial equality impact assessment, 12. confirmation of findings.

• No negative impacts have been identified – Action is to sign off screening and finish.
• Negative impacts have been identified but have been minimised or removed  - Action is to sign off screening and finish.
• Negative impacts could not be minimised or removed – Action is to sign off screening and complete a full impact assessment – Section 2.
• There is insufficient evidence to make a judgement - Action is to sign off screening and complete a full impact assessment – Section 2.

13. Name and job title of person completing this form

14. date of completion, 15. date for update or review of this screening.

• [1] National Census 2021 ethnicity categories are: English, Welsh, Scottish, Northern Irish or British; Irish; Gypsy or Irish Traveller; Roma; Any other White background (White); White and Black Caribbean; White and Black African; White and Asian; Any other Mixed or Multiple backgrounds (Mixed or Multiple ethnic groups); Indian; Pakistani; Bangladeshi; Chinese; Any Other Asian background (Asian or Asian British); Caribbean; African; Any other Black, Black British or Caribbean, Any other Black, Black British or Caribbean background (Black, Black British, Caribbean or African); Arab, Any other ethnic group (Other ethnic group).
• [2] The Equality Act’s `protected characteristics’ include age, disability, gender reassignment, pregnancy and maternity, race, religion or belief and sex and sexual orientation. It also covers marriage and civil partnerships, but not for all aspects of the duty. 
• [3] This involves having due regard, in particular, to the need to (a) remove or minimise disadvantages suffered by persons who share a protected characteristic that are connected to that characteristic; (b) take steps to meet the needs of persons who share a relevant protected characteristic that is different from the needs of persons who do not share it, and (c) encourage persons who share a relevant protected characteristic to participate in public life or in any other activity in which participation by such persons is disproportionately low.
• [4] This involves having due regard, in particular, to the need to (a) tackle prejudice, and (b) promote understanding.
• [5] The Council has a general duty to ‘eliminate unlawful discrimination, harassment and victimisation’. Direct discrimination occurs when a person is treated less favourably than another in a comparable situation because of their `protected characteristic’ whether on grounds of age, disability, pregnancy and maternity, ethnicity; religion or belief; sex (gender), sexual orientation, or marriage and civil partnership. Indirect discrimination occurs when an apparently neutral provision or practise would nevertheless disadvantage people on the grounds of their `protected characteristic’.

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Sorry, there are no results matching your search., vice president harris releases partial economic plan that includes tax proposals.

Elements of economic plan include several new tax incentives and preferences

Vice President and Democratic presidential nominee Kamala Harris today  released details  of elements of her economic plan. Among other items, Harris proposed several new tax incentives and preferences, including the following:

• A tax incentive for builders of homes sold to first time homebuyers
• An expansion of existing tax incentives for builders of affordable rental housing
• A tax credit for first time homebuyers
• A restoration of the American Rescue Plan Act version of the child tax credit (CTC) providing up to $3,600 per child
• A new expansion of the CTC providing a $6,000 tax credit for children in the first year of life
• A $1,500 expansion of the earned income tax credit available to lower income individuals
• A tax cut for Affordable Care Act premiums

The plan does not include specifics on whether the revenue cost of these items would be offset, though it does state that Harris will ask “the wealthiest Americans and largest corporations to pay their fair share” and that the plan will reduce the deficit.

Harris also calls for Congress to pass the  Stop Predatory Investing Act , which would eliminate certain tax benefits for investors who own large numbers of single-family homes.

KPMG observation

Notably, with regard to President Biden’s oft-stated pledge not to increase taxes on those making less than $400,000, “Vice President Harris is committed to ensuring no one earning less than $400,000 a year will pay more in new taxes.”

This pledge suggests that, for the $4 trillion of “tax cliff” items scheduled to expire at the end of 2025, Harris appears committed to extending those tax cuts for individuals making $400,000 or less. Though it is worth noting that use of the word “new” raises some uncertainty as to how the pledge will be applied.

Harris does not in today’s release endorse, or otherwise mention, the official tax plan of the Biden-Harris Administration, the so-called  Green Book .  Her vow to raise taxes on large corporations and the wealthy, however, is consistent with many of the proposals included in the Administration’s plan. Among other things, that plan calls for a 7% increase in the corporate tax rate, a number of new taxes on multinational businesses, and new taxes on high-earning individuals. For more information on the FY2025 Green Book, read  KPMG report: Tax proposals in FY 2025 budget .

Absent from today’s release is a proposal to exempt tip income from taxation. Harris has previously indicated that she (along with Republican nominee Donald Trump) supports this idea.

Finally, it should be noted that the sum total cost of all these proposals is several trillion dollars. Pursuing all of these ideas is likely to put significant pressure on finding new tax increases to offset the cost of these items.

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.

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What We Know About Kamala Harris’s $5 Trillion Tax Plan So Far

The vice president supports the tax increases proposed by the Biden White House, according to her campaign.

• Share full article

By Andrew Duehren

Reporting from Washington

In a campaign otherwise light on policy specifics, Vice President Kamala Harris this week quietly rolled out her most detailed, far-ranging proposal yet: nearly $5 trillion in tax increases over a decade.

That’s how much more revenue the federal government would raise if it adopted a number of tax increases that President Biden proposed in the spring . Ms. Harris’s campaign said this week that she supported those tax hikes, which were thoroughly laid out in the most recent federal budget plan prepared by the Biden administration.

No one making less than $400,000 a year would see their taxes go up under the plan. Instead, Ms. Harris is seeking to significantly raise taxes on the wealthiest Americans and large corporations. Congress has previously rejected many of these tax ideas, even when Democrats controlled both chambers.

While tax policy is right now a subplot in a turbulent presidential campaign, it will be a primary policy issue in Washington next year. The next president will have to work with Congress to address the tax cuts Donald J. Trump signed into law in 2017. Many of those tax cuts expire after 2025, meaning millions of Americans will see their taxes go up if lawmakers don’t reach a deal next year.

Here’s an overview of what we now know — and still don’t know — about the Democratic nominee’s views on taxes.

Higher taxes on corporations

The most recent White House budget includes several proposals that would raise taxes on large corporations . Chief among them is raising the corporate tax rate to 28 percent from 21 percent, a step that the Treasury Department estimated could bring in $1.3 trillion in revenue over the next 10 years.

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