§ Jeremy CorbynTo ask the Secretary of State for Transport, Local Government and the Regions what 599W changes he proposes in the borrowing arrangements for English local authorities to enable the construction of new council housing; and if he will make a statement. [25233]
§ Ms KeebleThe current arrangement whereby central Government approval is required for borrowing will be replaced, for local authorities in England, by a system where authorities are free to determine the amount of borrowing they undertake, subject to having the necessary resources to meet the costs of the borrowing. The change requires primary legislation and we are aiming to implement the new system by April 2004, or earlier if possible.
It is a matter for local authorities to decide how these and other capital resources are used, based on the needs of the area. However, we expect the provision of new social housing to be provided through Registered Social Landlords rather than by the council itself as this provides a greater number of units from the available resources and increases choice and competition between social sector landlords.