Chartered Institute of Public Finance and Accountancy

Articles and Reports

An Update and some thoughts on the Ministerial Statement on HRA Subsidy Reform

Monday 13th December 2010 looks set to be a date for Local Government to remember. Out came the least generous Local Government Finance Settlement ever, the very wide-ranging Localism Bill and written ministerial statements on education spending, on the pupil premium, on business rates and on Local Enterprise Partnerships. There was also a written Ministerial Statement on the reform of the Housing Revenue Account Subsidy System. This last provoked less of a splash in the press - almost none in fact - so if you missed it, click here for an update and some thoughts.

To read the Ministerial Statement in full, please click here.

CIPFA welcomes housing reform announcement

CIPFA has welcomed the announcement by Housing Minister, John Healey, on reforming the current housing finance system and is pleased to see that the Government has listened to the concerns raised by so many local authorities and organisations. There is however some disappointment that the consultation document proposes placing capital limits on councils. Click here to read more...

Pre-Budget Report: public sector headline

As part of the Government's fiscal stimulus package, the Government will be bringing forward £3 billion of capital spending from 2010-11 into 2009-10 and 2008-09 "for housing, education, transport and other construction projects, supporting industries and jobs across the country." Current overall spending is assumed to grow in real terms by 1.3 per cent in 2011-12, 1.2 per cent in 2012-13 and 1.1 per cent in 2013-14.

However, there will be "an additional £5 billion value for money target for 2 010-11"

Pre-Budget Report: detail for Housing

Details of the Chancellor's package of housing measures are set out in the supporting full pre-budget report on the Treasury website. They include:

1) Additional funding to ensure access to free and independent debt advice at the earliest possible opportunity for all householders in financial difficulty;

2) Establishment of a Home Finance Forum bringing together Government, regulators, industry and consumer groups to help protect borrowers from repossession, alongside commitments from mortgage lenders on fair treatment of borrowers facing difficulties;

3) Further strengthening of the Support for Mortgage Interest benefit and extension of the Government Mortgage Rescue scheme;

4) Bringing forward spending to stimulate the economy and ncrease housing supply through investing in social housing, the Decent Homes programme, regeneration projects and housing infrastructure.

The figures quoted in the full pre-budget report include £200 million on Decent Homes programmes to fund improvements and improve energy efficiency in 24,000 council homes, £150 million on social rented housing to deliver up to 2,000 more social rented homes and reduce the number of households in temporary accommodation, £175 million for major repairs to council housing stock, and £100 million to support key regeneration and housing infrastructure projects. The RDAs "will also consider the scope for bringing forward up to £100 million nationally to provide a fiscal stimulus to regional and national economic development;"

The Treasury has given the following example of what this will mean for London: "Bringing forward of investment in new social housing stock will help impact on the 13,800 households deemed in priority need of housing by local authorities in London. It will also help reduce the 54,000 currently living in temporary accommodation in London"

CIPFA chief responds to the pre-Budget report

Steve Freer, CIPFA Chief Executive has responded to the Chancellor's statement on the Pre-Budget Report on Monday 24 November. Steve Freer said:

"The size and scale of public spending increases are matters for the politicians - CIPFA's concern is that extra money is invested wisely and in a manner which is sustainable for the long term. It is critically important that the disciplines of good financial management are firmly to the fore. The planning of schemes and initiatives to help stimulate the economy can be expedited but it must not be compromised. Decision making must be as rigorous and robust as possible with proper regard not only for upfront capital costs but also for downstream revenue implications".

Gershon: Opening gambits
The options available and the issues local authorities can consider when looking to make efficiency savings in their housing services. Click here to download an article by Lesley Lodge featured in Property People.

On the money
Choices for local authorities to make following the government's recent "efficiency technical note". Click here to read an article by Lesley Lodge in Housing Today.

Prudential borrowing might be easier than you think
The option for local authorities to borrow to spend on housing standards is already available. Click here to read an article by Lesley Lodge in Housing Today.