The Group's business plan sets out our priorities for the coming years, and projects to the next 30 years.
This gives the regulator and our lenders confidence in the long term viability of the business. The plan is reviewed annually to reflect the ongoing development of the corporate strategy and reflects several key factors. These are:
The annual 1% reduction in social rents imposed by the amended rent settlement
The potential impacts of the increased scope of Right to Buy
The Government policy shift in focus toward home ownership
Our view of future land and construction costs
Our ambitions to continue to provide more homes for new customers
Our commitment to paying the living wage
Updates to inflation forecasts over the period
The impact of transforming the way we provide services to our customers
Increased investment in IT to cover the requirements of the above and to improve internal processes
The Group believes it has the underlying financial stability to continue its strategy to continue to grow and to deliver excellent customer service. Delivering a programme of cost savings as part of the overall business transformation can mitigate some of the effects of these factors. Ultimately, the business plan shows the Group to be in good financial health with capacity to make strategic decisions to ensure it maintains its position as a developer of mixed-tenure housing.
Our decisions and priorities over the coming few years are driven by our Corporate Strategy.