Decision details

The purpose of this decision is to respond to the consultation prospectus on the government’s proposal to replace the Housing Revenue Account (HRA) Subsidy System, which offered this authority to take on £197 million of debt incurred by other councils, in return for which the authority would be able to retain 100% of housing rent collected locally.

The Council recognises that the self-financing proposal is preferable in the long term to the current HRA subsidy regime. It is, however, reluctant to proceed to an early voluntary implementation. 

For the reasons given in the full consultation response, the Council is concerned that the opening level of debt proposed has not fully taken into account all of the spending needs of the Council. 

Option 1: The Council has the option to respond negatively to the self-financing proposals.

Reason for Rejection: The principle of moving to a self-funding regime is accepted.

Option 2: To support the move to self-financing without qualification.

Reason for Rejection: The Council requires the scale of the opening debt proposed for South Cambs to be reconsidered and further assurances provided in relation to interest rates.