Local authorities will learn how much debt they must take on to gain full control of their housing revenues early next year. The consultation on the future for social housing, “Local Decisions: A Fair Future for Social Housing”, confirms the government’s commitment to moving to a self-financing system for council housing. The consultation paper says the self-financing model will be implemented through a one-off settlement payment between each local authority and central government, which will be determined by a valuation of each local authority’s social housing business. These valuations will take account of income and expenditure needs over 30 years and the level of housing debt. Under proposals drawn up by the Labour government, which have been continued by the coalition government, this was expected to total around £25 billion. Further details about the self-financing settlement are expected to be announced shortly. There will also be a policy document published in January detailing the methodology behind the settlement, alongside a model with updated data that will enable local authorities to calculate the likely impact for them of the self-financing deal. Download the consultation from the CLG website.
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