Following the Prime Minister's announcement of the scrapping of the HRA borrowing
Cap, the Government has moved quickly to issue a draft
determination ahead of the Budget on Monday 29 October.
In a letter to local authority Chief Executives
dated 18 October from the Secretary of State, Rt Hon James
Brokenshire MP to local authorities, the Ministry of Housing sought
views by 24 October on the wording of a draft determination under
the Local Government & Housing Act 1989, abolishing the Housing
Revenue Account cap.
The Government intends to remove the borrowing cap by issuing a
determination, revoking previous determinations that specified a
local authority's limit on indebtedness. The letter confirms the
Government's intention to remove the borrowing cap as soon as
possible, with further details to be confirmed in the Chancellor's
Budget on 29 October 2018.