Welsh council outlines £62m development plan for next financial year

Caerphilly’s business plan will be scrutinised by the Welsh government to ensure it demonstrates maintenance of the WHQS and that the HRA does not show a debit balance.

The council said its business plan confirms the HRA “remains financially sustainable” and supports continued work to maintain and improve existing homes, meet national housing standards and invest in new council and affordable homes.

Its plan, which was approved at a cabinet meeting on 18 February, said the value of Caerphilly’s HRA in the next financial year, accounting for a rent increase of 4.3%, is £63.3m.

Its capital programme is £93.5m, including £57.6m to maintain the WHQS programme and £35.9m for increasing housing supply.

The report to cabinet said: “The current proposals allow for 215 units (social rented and blended-tenure schemes) over the period 2026-27 to 2027-28 at a cost of some £61.8m.”

“The Housing Business Plan for 2026-27 confirms that the HRA remains viable with the current borrowing requirement up to 2026-27, as it demonstrates the capital account is fully funded and the revenue account is not in a deficit position,” it added.

However, the council warned that when decarbonisation costs for Part 3 of the 2023 WHQS are included, and in the absence of any extra funding from the Welsh government, its costs “are not sustainable going forward and without efficiency measures or additional funding, the HRA will become unviable”.

Shayne Cook, deputy leader and cabinet member for housing, said: “This plan is about looking after our tenants while planning responsibly for the future.

“It ensures we can continue investing in the quality, safety and energy efficiency of council homes, while also supporting the delivery of new housing for local people.”