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SOCIAL HOUSING

Building balance: The case for £3-a-week rent convergence

Decisions around rent convergence in the Government’s upcoming Budget will shape the strength of London’s Housing Revenue Accounts, say Clive Palfreyman and Dan Hawthorn – and they argue that rent convergence at £3 per week would be critical for restoring the financial foundations of council housing.

© Jun Huang / Shutterstock

As boroughs finalise next year's budgets, debate is centred on the impact of funding reforms underway through the Fair Funding Review 2.0, increasing reliance on Exceptional Financial Support, accumulated deficits in Dedicated Schools Grants, and rising costs in social care and temporary accommodation. 

However, it is important we do not forget another critical element of local government finances under mounting strain: the Housing Revenue Account (HRA). 

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