Abolish Borrowing Cap So Local Authorities Can Increase Housing Supply

In Autumn Budget 2017, the Government raised the borrowing cap for councils in areas of high affordability by £1 billion to help achieve its target of 300,000 new homes per year. Private housebuilders have consistently provided 150,000 units per year, so the target is unlikely to be met without a significant increase in supply by local authorities. To achieve this, the Housing Revenue Account borrowing cap should be removed. At the very least, the Treasury should define the allocation criteria for the additional £1 billion more clearly. Read more on the Parliament website.

http://www.parliament.uk/business/committees/committees-a-z/commons-select/treasury-committee/news-parliament-2017/budget-autumn-2017-report-published-17-19/