The government has announced its intention to lift the borrowing cap on Housing Revenue Accounts (HRA) on 30 October.
The draft notice of determination to revoke previous limitations on HRA borrowing accompanies a letter to all housing stock-owning local authorities from the housing and communities secretary James Brokenshire today.
Mr Brokenshire said the government would now consult councils, local government representatives and relevant professional bodies on the draft ’Limits on Indebtedness (Revocation) Determination 2018’ before formally issuing the document.
The determination also includes the formula by which councils’ HRA capital financing requirement, a measure which reflects a council’s underlying need to borrow, will be set under the prudential code.
A deadline of 24 October has been set for respondents to consider the legal notice and respond to the ministry.