James Brokenshire has written to all housing stock-owning local authorities outlining plans to lift the cap on how much councils can borrow against their housing revenue account.
The measure, announced by Theresa May at the Conservative party conference earlier this month, will come into force on 30 October 2018.
In his letter, published yesterday, Brokenshire said: “We intend to remove the borrowing cap by issuing a determination revoking previous determinations that specified a local authority’s limits on indebtedness.
“We must consult local authorities, representatives of local government, and relevant professional bodies before issuing this determination.”
The government will consult on the plans until 24 October.
Alongside the letter, Brokenshire included the draft determination, which highlights 30 October 2018 as the date on which the HRA cap will be scrapped.
The letter said: “Following consultation, our aim is to remove the borrowing cap as soon as possible, with further details confirmed in the Budget.”
Read Jonathan Carr-West’s blog for PF on the importance of the announcement at the Conservative Party Conference at the start of the month.
