The Society of Municipal Treasurers welcomed the Government's announcement that the borrowing cap on the Housing Revenue Account (HRA) would be scrapped. Local government has lobbied long and hard for this, and it feels like a step in the right direction, but on its own it will not be the game-changer we need to address the housing shortage.

It is difficult to develop a sound business case to borrow to build given the cost of construction, the level of rents and the fact that the asset might be sold at a discount under Right to Buy. If it is difficult to make this add up over 30 years in say, Doncaster, it will be nigh impossible to do it in London.