CIPFA launches consultation on council house finance revolution

01-02-2011

The new housing system, published today by Housing Minister Grant Shapps is a key measure of the Localism Bill currently before Parliament. The announcement includes a detailed description of how each council's opening financial position will be determined and how these reforms would be implemented in April 2012.

The abolition of the housing subsidy system will require changes to the capital financing arrangements for housing, particularly with the change in Item 8 determination. CIPFA has launched a major consultation on proposals that it has developed to implement the new arrangements focusing on two key areas:

  • Management of Debt
  • Depreciation

These proposals have been drawn up by a sub group of CIPFA’s Local Authority Housing Panel, Treasury Management Panel and Local Authority Accounting Panel.

General and specific comments on the proposals should be received by Monday February 28th. Comments should be sent by email to julian.smith@cipfa.org.uk

Alison Scott, Assistant Director of Policy at CIPFA said:

‘These changes amount to a revolution in council housing finance. CIPFA is consulting widely on the proposed capital finance arrangements and the responses will inform further CIPFA guidance, which will help implement these changes effectively.’

To read the consultation in full, visit http://www.cipfa.org.uk/panels/housing/.

The Minister’s announcement can be downloaded from the CLG website at:

http://www.communities.gov.uk/news/corporate/1831661

Ends

Contact: Guy Roberts/ Lindsay Machin / Chloe Forbes
CIPFA Press Office
t 020 7543 5712/5645/5787
guy.roberts@cipfa.org.uk/ lindsay.machin@cipfa.org.uk / chloe.forbes@cipfa.org.uk

Notes to Editors:

About CIPFA

CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. They include the benchmark professional qualification for public sector accountants as well as a postgraduate diploma for people already working in leadership positions. They are taught by our in-house CIPFA Education and Training Centre as well as other places of learning around the world. We also champion high performance in public services, translating our experience and insight into clear advice and practical services. They include information and guidance, courses and conferences, property and asset management solutions, consultancy and interim people for a range of public sector clients. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services.