Rental Income Buyout for Self-Financing Councils Lower Than Expected

The government has finalised the amount that local authorities will have to pay to take control of their rental income, with many of the final payouts coming in lower than expected. After making the final calculations, the CLG has confirmed that 136 councils will be required to make a payment to the government, with the London borough of Wandsworth to make the largest payment of £433.6m. However, 33 councils that are currently subsidised by the government will receive payments to help reduce their inherited debt, with the London borough of Hackney to receive the largest share with £752.6m. Councils making the move to self-financing are expected to borrow at discounted rates from the Public Works Loan Board in order to service the debt. The move to self-financing will apply from 1 April 2012, with payments from councils due on 28 March 2012. Read more on the Guardian website.