London Councils has welcomed the government’s move towards placing housing revenue account (HRA) borrowing under the prudential code, in line with other types of local authority borrowing.

Cllr Darren Rodwell, London Councils’ Executive Member for Housing and Planning, said:

“After years of calling for boroughs to be empowered to build more council homes, we’re pleased to see the government taking firm steps in this direction.

“Lifting the HRA borrowing cap and allowing prudential borrowing will make it far more financially viable for local authorities to invest in new housing.”