ALMOs urge chancellor to lift borrowing caps

In a call issued ahead of chancellor George Osborne’s spending review on 26 June, the National Federation of ALMOs argues removing the caps would help economic growth.

The borrowing caps limit the amount of debt councils can secure against their housing assets, and were introduced in April 2012 as part of the reform of the housing revenue account subsidy system.

The removal of the caps is backed by a range of housing organisations, including the Chartered Institute of Housing and the National Housing Federation. London mayor Boris Johnson has also called for more freedom for councils in the capital to borrow to fund homes.

The campaigners say councils would borrow around £7 billion to build 60,000 homes over five years if the caps were removed.

The NFA is also urging Mr Osborne to maintain funding for the decent homes programme. It says most of its members have completed decent homes work, but the investment should continue to improve the minority of social homes that do not yet meet the standard.

Sue Roberts, chair of the NFA, said: ‘Whilst the NFA remains conscious of the tight fiscal environment in which the current spending review takes place, the decent homes programme has brought significant economic and social benefits to thousands of families across the county.

‘At a time when the chancellor should be focussing on growing the economy, we are confident that our recommendations on new build and decent homes will bring both economic growth and wider benefits to social housing tenants and their communities.’

Inside Housing is calling on the government to make a long-term commitment to grant funding for affordable housing in the spending review. Find out more about the Grant Britain Homes campaign, and sign our petition.