Council house finance announcement welcomed
The Chartered Institute of Housing (CIH) has welcomed Housing Minister Grant Shapps’ confirmation today of his intention to scrap the Housing Revenue Account (HRA) subsidy system in England.
Sarah Webb, CIH Chief Executive, said: “We are delighted that the Housing Minister has confirmed his intention to replace the current unfair and archaic system of council housing finance. The steps he has announced today will remove a millstone from around the neck of local authorities who have been anxious for a sustainable approach to their housing finances.
“We have campaigned for these changes since 2005 and look forward to the detail to be published with the Comprehensive Spending Review. When councils are allowed to retain the income from rents and house sales we believe they will be able to make better and more locally-based decisions for the benefit of their tenants and the wider community.”
She continued: “We are, however, disappointed that the opportunity for some local authorities to leave the system voluntarily next April has been withdrawn. A number of authorities had been enthusiastic about the chance to exit this unjust system early. Ultimately, however, what matters is that the system will be replaced and the Minister’s announcement today is a giant step forwards”