MPs: Scrap Housing Revenue Account Cap Where Housing Unaffordable

Borrowing caps on councils’ Housing Revenue Accounts (HRA) should be raised – and, in some cases, scrapped – to help boost housebuilding, MPs have recommended. A report by the Communities and Local Government Committee, Capacity in the Homebuilding Industry, suggests that HRA borrowing caps are limiting local authorities’ ability to build. The report notes that research found that 57% of 141 councils had not made use of the additional borrowing capacity since the introduction of self-financing in 2012. Download the report from the Parliament website.