Along with other Registered Providers of social housing, there are risks which could impact upon the HRA Business Plan, including:

• The impact of National Housing Policies The impact of several national policy changes, particularly the Social Housing (Regulation) Act 2023, are likely to impact on the service and may require additional resourcing.
• Repairs and Maintenance Repairs and Maintenance risks which could impact on the demand for services include increased voids, disrepair claims, reports of damp and mould, changes in regulations, and changes in maintenance providers. The increased expenditure on the properties reflects the changing expectations and providing homes that meet the required standards. There remains some regulatory risk if the standards change and increase the investment required.
• Cost of Living The continued increase in the cost of living could increase the number of households in arrears and the value of rent arrears, leading to the need to increase bad debt provisions and potential increases in write offs. As a result of this, it is likely that additional focussed resources will be required to deal with tenant arrears and to support households.

RISK MANAGEMENT IN BUDGET SETTING

It is important that spending is contained within budget so that the council can maintain its financial standing in the face of further pressure on resources in 2026/27 and beyond, as set out in the annual review of the MTFS.

Key strategic risks are included in the Corporate Risk Register, regularly reported to SLT and Audit Committee, and reviewed through the updated Budget strategy and MTFS.

The balancing of the budget in-year depends upon the council achieving its council tax and business rates projections which are closely monitored, and which continue to be challenging in an environment of continued cost-of-living pressures.

The identified immediate risks to the budget process are:

• unfunded income loss pressures as a result of the economic environment and the cost-of-living crisis, particularly in relation to council tax and business rates income – the council will continue to closely monitor the impact of these income streams
• non-delivery of the approved savings plans
• social care and homelessness placement pressures (demand and market), which have been partly mitigated by corporate budgets.

Although the introduction of a multi-year settlement has provided greater certainty in the medium-term, there remains potential for further, as yet unrecognised, risks. For this reason, a prudent approach to the level of reserves held by the council remains sensible and necessary. The strategic director resources, as the council's section 151 officer, is required to state whether the reserves are adequate as part of the annual budget setting process.

The council's MTFS is continually under review and builds in projections for the MTFS period and beyond as further details and analysis become available. These updates are regularly reviewed by SLT and the portfolio holder and updated to reflect financial environment the council is operating in are. Any sustainability impacts will be considered before final decisions are taken on whether or not to implement each proposal.