Council chiefs have recently said that if the government changed the rules on borrowing town hall could raise an extra £1 billion for affordable housing.
This extra freedom to borrow money would help councils to deliver vital affordable housing, according which was compiled by Westminster Council and supported by 10 others. Local authorities currently own over 1.8 millions and these will need significant funding to be properly managed and maintained over the coming years, when funding is becoming increasingly scarce.
The report has been presented to housing minister Grant Shapps and its proposals would help to facilitate the regeneration of deprived areas whilst contributing toward's the governments target of providing 15,000 affordable new homes in the next four years. These new homes would also help the construction industry, a critical element for driving future growth in the economy.
Cllr Philippa Roe, Westminster Council’s cabinet member for housing, said: "There is a great deal of sensitivity around changing borrowing rules in the current climate, but what we are saying is that it will not affect the credit rating of the UK.
"We believe there is a strong economic case for with borrowing to play a significant role in securing investment in the sector enabling local authorities to deliver additional homes and regeneration."