Shapps Rules Out Early 'Voluntary' Exit from HRA System

Housing minister Grant Shapps has ruled out the opportunity for some local authorities to leave the Housing Revenue Account (HRA) subsidy system 'voluntarily' next April.  A number of local authorities had been enthusiastic about the chance to exit the system - where councils are required to pay council house rents and the majority of receipts from any sales of land or homes to Whitehall - next April.  However, he said today that the reforms could only be achieved through primary legislation. The new freedoms will be contained in the Localism Bill. A statement from Communities and Local Government said 'the minister is therefore ruling out a voluntary deal ahead of securing the powers in the Localism Bill'.  His plans to scrap the HRA subsidy system - thereby allowing councils to keep all the rents and sales receipts they collect - has been warmly welcomed by the Chartered Institute of Housing (CIH).  Read more on 24dash.