WHITEHALL

Budget 2018: Lifting of cap could lead to £15bn extra debt

The abolition of the Housing Revenue Account (HRA) borrowing cap in this week’s Budget could enable councils to take on up to £15bn in extra debt, according to property adviser Savills.

The abolition of the Housing Revenue Account (HRA) borrowing cap could enable councils to take on up to £15bn extra debt to build 100,000 new homes, according to property adviser Savills.

Local Government Association Conservative group leader, Cllr James Jamieson, said the cap had ‘hampered the ability of councils to play a leading role in tackling our chronic housing shortage'.

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