Topical question asked in the House of Commons, by Neil Turner (Labour). It was answered on Tuesday, 27 October 2009 on behalf of the Department for Communities and Local Government.

Topical Questions

Question: There is widespread agreement that the housing revenue account system is not fit for purpose, so I give the review that is under way a warm welcome. The Treasury has proposed taking an extra £7 billion dowry from councils, but does my right hon. Friend agree that that would prevent them from implementing the Decent Homes standard, and that it could be seen as a tax on council house tenants?

Answer: What I have launched is not a review of the housing revenue account system but a plan to dismantle the system that has been in place for more than 20 years. That system has held councils back from being able to build and maintain homes at a decent standard. It is not just that there will be enough money in the system to ensure that all councils can maintain all their homes to a decent standard, because in fact there will be more money for those purposes over the next 10 to 20 years. I am now doing the detailed work with those local authorities that want the reform, which will replace the old system with a structure that will give authorities control over their own rents and housing. That will enable them to provide better services for tenants in the future.

Secondary information