Overview

This bill aims to simplify the rules governing how much debt local housing authorities in England and Wales can take on for housing purposes. It replaces the current, specific debt limits with a system that aligns with the existing rules for non-housing related borrowing, promoting a more consistent approach.

Description

The Local Housing Authority Debt Bill [HL] mandates the Secretary of State to replace the existing system of limits on local housing authorities’ debt. This change will involve adopting the existing "prudential regime" used for non-housing related local authority borrowing. This regime is based on a professional code of practice that guides local authorities in making capital investment decisions. The Secretary of State must make this change within six months of the bill becoming law. The bill defines "local housing authority" and "housing debt" as they are defined in existing legislation (Housing Act 1985 and Localism Act 2011, respectively). The bill only applies to England and Wales.

Government Spending

The bill itself doesn't directly involve government spending. However, the change in debt limits could indirectly impact government spending if it leads to increased or decreased borrowing by local housing authorities, affecting the overall government's financial liabilities or future support obligations. No specific figures are provided in the bill text.

Groups Affected

• Local Housing Authorities in England and Wales: This bill directly impacts them by changing the rules around how much they can borrow for housing projects. The impact will depend on individual authority's financial situations and borrowing needs.
• Individuals seeking social housing: Changes in borrowing limits could affect the availability of social housing, depending on how local authorities respond to the new rules.
• Taxpayers: Indirectly, taxpayers may be affected depending on how the changes influence local council tax, rates, and overall government financial position.

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