Concern over HRA U-Turn

CIH has raised concerns over reform of the Housing Revenue Account (HRA) detailed in the Budget. Grainia Long, chief executive of CIH, expressed worries over the government’s plans to re-examine the amount councils are allowed to borrow after April 1 because the impact on public sector debt might be greater than expected.  She said: “Ministers stated during the passage of the Localism Bill that once set these caps wouldn’t be changed. The statement made in the budget may mean this promise is set to be broken and if so will severely disrupt council plans.”  Reform of HRA would, according to the Office of Budget Responsibility, increase public borrowing more than originally estimated.  “These are just estimates but if they do not change then the government has said it will take action to address the increase in public debt. This is very concerning and is a departure from the original commitment.”  Read more on the CIH website.