LGA responds to scrapping of the housing borrowing cap

Responding to the announcement in the Prime Minister’s Conference speech, that the housing revenue account borrowing cap will be scrapped, Lord Porter, Chairman of the Local Government Association, said: 

“Today’s speech by the Prime Minister shows that the Government has heard our argument that councils must be part of the solution to our chronic housing shortage.

“It is fantastic that the Government has accepted our long-standing call to scrap the housing borrowing cap. We look forward to working with councils and the Government to build those good quality affordable new homes and infrastructure that everyone in our communities need.

“Our national housing shortage is one of the most pressing issues we face and it is clear that only an increase of all types of housing – including those for affordable or social rent – will solve the housing crisis.

“The last time this country built homes at the scale that we need now was in the 1970s when councils built more than 40 per cent of them.

“Councils were trusted to get on and build homes that their communities needed, and they delivered, and it is great that they are being given the chance to do so again.”