The Government has revealed plans to axe the cap on councils borrowing against assets to build new homes by the end of this month (October). A draft document sent to council chief executives states the Government is looking to remove the cap on 30 October. The abolition of the cap was announced earlier this month by the prime minister, Theresa May at the Conservative Party annual conference in Birmingham. ‘We intend to remove the borrowing cap by issuing a determination revoking previous determinations that specified a local authority’s limits on indebtedness,’ writes the Housing Secretary, James Brokenshire in an accompanying letter. ‘We must consult local authorities, representative of local government, and relevant professional bodies before issuing this determination. Accordingly, I attach a draft of the determination that we are intending to make.’ The Government has asked for all responses to be sent to ministers by 24 October. There have been … (To read the full article, subscribe below)

Jamie Hailstone

Senior reporter – NewStart