Housing Revenue Accounts – Parliamentary Written Answer

Mr Betts: To ask the Secretary of State for Communities and Local Government whether his Department has had discussions with local authorities on the future-ring fencing arrangements for the Housing Revenue Account following the introduction of self-financing.
Andrew Stunell: My Department has not had specific discussions with local authorities on this subject though it has been raised in general discussions on reforms to the Housing Revenue Account subsidy system. The ring-fence will continue after reform and 'Implementing self-financing for council housing', which we published on 1 February, advised that we do not intend to issue new guidance on its operation. Abolition of the subsidy system does not end the requirement for local authorities to maintain a statutory, ring-fenced Housing Revenue Account. They will still be required to account to their tenants for income and expenditure on council housing separately from other functions and services. This ensures that council taxpayers do not subsidise services specifically for the benefit of tenants and that rent is not used to subsidise functions which are for the benefit of the wider local community.