The Department for Local Communities and Government (DCLG) has
issued consultation on proposed amendments to Capital Finance
Regulations impacting on the share of the capital receipts
arising from right to buy (RTB) receipts that councils are required
to pay to HM Treasury. The formula for calculating this has been in
place since 2012 and expires on 31 March this year.
This consultation proposes that receipts paid to HM Treasury for
the next four years should be calculated essentially on the same
principles as previous years.
The headline announcements in the Consultation Paper are:
- To keep the total "government share" at £183million (i.e. the
same as in 2015/16 and 2016/17
- Not to change the formula used for apportioning RTB receipts
but to extend it to 2020/21 using the assumed RTB sale numbers
included in the original HRA Self-financing settlement of
DCLG are not seeking views on the principle of pooling receipts
but on the proposed amendments to the Capital Finance Regulations.
The closing date for responses is 3 March 2017.
ARCH member councils are advised to discuss the implications of
the proposed amendments on their Housing Revenue Account Business
Plans and copy their responses to the consultation to ARCH Policy
Adviser, Matthew Warburton: Matthew.Warburton@arch-housing.org.uk.