---

Housing and Regeneration Bill

The hon. Gentleman may want to look more carefully at the Bill, because it includes proposals to make it possible for local councils to be taken outside the housing revenue account system—with support for pilots and the potential for greater reform to the housing revenue account system. The important principle that underlies the housing revenue account is the recognition that there are different needs in different parts of the country, and there were different historical funding arrangements. There is an important and fair principle of redistribution underpinning the housing revenue account. However, there are fundamental problems with it. It does not deliver the most effective long-term management of the housing stock by local councils. That is why we have said we want to set up the pilots—to look at what appropriate longer-term reforms could be made to the housing revenue account to deliver a fairer deal for every part of the country.