Councils are increasingly funding capital spending
through their Housing Revenue Accounts (HRAs) or major repairs reserves as
government funding has decreased, a National Audit Office (NAO) report has found.
Since 2010/11, funding from the HRA or major repairs reserves to support
capital spending has increased by 58%. In 2010/11 £1.4bn came from HRAs,
compared to £2.2bn in 2014/15. The NAO’s report looks at how councils’ capital
funding and spending has changed since 2010, when the government started to
reduce funding for local government. It found there are increasing pressures
from capital spending and if authorities “cannot reduce their capital costs… it
will place further pressure on their revenue spending”. Download the report
from the NAO website.
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