To ask the Secretary of State for Levelling Up, Housing and Communities, what recent discussions he has had with the Chancellor of the Exchequer on providing adequate funds to local authorities to address the cost of building materials surge.
23 November 2021
As far as housebuilding costs are concerned, local authorities have access to a range of financing options that allow them to respond to changes in the prices of material. Since 2012 local authorities have had the freedom to decide how to invest in their housing stock. In 2018 we made this easier by abolishing the Housing Revenue Account borrowing cap, giving local authorities greater flexibility to borrow for investment in housing. Local authorities also benefit from lower rates of borrowing available through the Public Works Loan Board.