HRABP - Draft 8 - Flipbook - Page 28
5 Risk Management
1. The East Suffolk Housing Strategy
sets a challenging target of 100 new
council properties in each year for
five years. Current plans indicate
that the Council will build just over
half of that total in the next 5 years
with the full target taking longer to
achieve. Though it is expected that
reserves will reduce in the medium
term (with repayment of debt and
ongoing investment in the existing
stock and new housing development)
the investment programme of this
Business Plan is able to be fully
funded while leaving significant
borrowing headroom.
2. The East Suffolk Business Plan
together with the East Suffolk
Housing Strategy recognises the
importance of the Lowestoft and
Outer Harbour Area Action Plan and
our broader corporate objectives.
The Area Action Plan has a long term
objective of significant residential and
industrial development and the HRA
is recognised as a potential driver
of housing development as well as
playing a key part in land assembly.
The investment costs to the HRA
of this intervention will increase
but will be managed by ensuring
our projected costs are budgeted
and can be financed in future years.
3. Careful control of the budget limits
risk exposure but other management
options are available within the HRA
to manage any additional risks as
follows:a. Reduce Major Work Programmes –
reduce or extend the time period
for our major works programme to
reduce revenue expenditure on the
housing stock;
28 East Suffolk HRA Business Plan 2018 - 2048
b. Delay site acquisition and new
development
programmes –
extend, delay or reduce the new
development and redevelopment
programmes;
c. Disposal of HRA Assets -Identify
surplus or less viable housing assets
for disposal to increase income,
including potentially the small
commercial property portfolio.
4. The Business Plan uses prudent
assumptions so that risk is minimised,
and a range of scenarios applied
to ‘stress test’ budgets. Set out on
the next page is a summary of other
potential risks to the stability of the
Business Plan and mitigating actions:
