Friday, 11 March 2011

Housing Finance

Today I have tabled an Early Day Motion calling on the government to allow local authorities to keep 100% of right to buy receipts for reinvestment locally.

There has been all-party support for the reform of council housing finance, which was announced by the previous Labour government and has been continued by the Conservative-led coalition.

However, this government is now proposing that councils should not have the ability to retain and re-invest the receipts from the sales of any council homes. Further, it is intending to take total control of what should be local decision-making by replacing the current framework of prudential financial guidelines.

I believe that these proposals run completely counter to the principles of the Localism agenda and to the other measures to reform council housing finance.

I believe there will be wide cross-party support for our proposals which are the most conducive to councils' abilities to maintain existing housing and provide new homes. We know this has cross-party support in the Local Government Association.