Overview

This bill aims to allow up to three local authorities in England and Wales to leave the national housing subsidy system and manage their council housing finances independently by April 2011. The Secretary of State will negotiate the terms with the chosen authorities, establishing new financial arrangements and setting limits on their borrowing.

Description

The bill mandates the Secretary of State to select up to three local authorities to participate in a pilot program known as "Council Housing (Local Financing Pathfinders)." These authorities would become responsible for managing their council housing finances outside the existing national system. The Secretary of State will establish the criteria for selection and negotiate agreements with the chosen authorities by April 2011.

Key Aspects:

• Selection Process: The Secretary of State will determine criteria for selecting the participating local authorities.
• Financial Arrangements: A schedule outlines the framework for settlement payments between the Secretary of State and participating authorities, accounting for existing debts and future income/expenditure. These payments can be made in installments, and the Secretary of State can charge interest and additional costs for late payments.
• Debt Limits: The Secretary of State will set limits on the amount of housing debt these local authorities can hold.
• Information Requirements: Participating local authorities must provide the Secretary of State with specified information.
• Consultation: The Secretary of State must consult with local government representatives and relevant bodies before making determinations under the bill's schedule.

Government Spending

The bill states that any expenditure incurred by the Secretary of State under this Act, and any increase in sums payable under other Acts due to this Act, will be paid out of money provided by Parliament. No specific figures are provided in the bill itself.

Groups Affected

• Selected Local Authorities: These authorities will experience significant changes in how they manage their council housing finances, potentially leading to increased autonomy but also increased financial risk and responsibility.
• Council Housing Tenants: While the direct impact is uncertain, changes in how housing is financed could indirectly influence rent levels, service provision, and investment in council housing.
• The UK Government (Treasury): This bill could alter government spending on housing subsidies, although the overall financial impact is not specified.

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