Councils Reject HRA Conditions

Councils have demanded the government drops legislation which could see authorities take on additional debt as part of their housing finance settlement. The Local Government Association wants the Decentralisation and Localism Bill amended to prevent ministers increasing the amount of debt already allocated to councils through housing revenue account reform. From April 2012 councils will take on a share of the £21 billion HRA debt in exchange for greater freedom to manage rental incomes. The bill currently allows communities secretary Eric Pickles to reopen this settlement and demand more money in the future. An LGA spokesperson said: ‘The debt councils take on in return for self-financing should be a one-off amount. What is being proposed would be like buying a house on the condition the seller could demand more money at some point in the future.’ Read more on Inside Housing.