Cambridge Labour welcomes the Prime Minister’s announcement to abolish the local government cap on borrowing to fund new developments, but warns that the “devil is in the detail” and calls for urgent action to be taken now.
Cllr Richard Johnson Executive Councillor for Housing says, “It’s welcome news that the Prime Minister has finally listened to what we, other Labour councils and John Healey, Shadow Housing Minister have been saying for years: it’s time to scrap the HRA borrowing cap.
“However, the devil, will, as always, be in the detail. This wasn’t in the Government’s recent Green Paper and the most recent policy announcements on this issue have simply consisted of tinkering around the edges, so it remains to be seen whether this will be a game changer.
“We need urgent action and the Government needs to give us the power now – not next month or next year – to build the homes we need.”
Since gaining control of the City Council in 2014, Cambridge Labour has repeatedly called for the national government to lift the cap on borrowing to fund new developments. Since 2015, the Labour-controlled council has built over 240 council homes since 2015 and is working to build a further 500 new council homes over the next five years from £70,000,000 funding that Cambridge Labour argued for and won as part of the Devolution deal.