Thangam Debbonaire:
To ask the Secretary of State for Communities and Local Government, with
reference to the report of the House of Lords Economic Affairs Committee,
Building More Homes, HL 20, published on 15 July 2016, for what reasons there
is a limit on the amount local authorities can borrow to invest in building
houses.
Gavin Barwell: The borrowing caps were introduced as part
of the Housing Revenue Account self financing settlement, which entailed a once
and for all rebalancing of housing debt. There are no plans to lift the caps,
which are part of the government's strategy to manage the overall level of
public debt. Local authorities do have the capacity to borrow to build new
homes, there is nearly
£3.4 billion headroom available nationally and £2.9
billion in reserves.
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