Oral Answers to Questions

Jayne Kirkham Excerpts

Monday 7th September 2026 Commons Chamber

[Jim McMahon]

I congratulate my hon. Friend on championing Putney and her high street, and for attending the roundtable. Councils need both the tools and the support to bring vacant properties back into use, which is why we introduced high street rental actions. To make powers as straightforward as possible, we have published guidance and templates and established a dedicated support mechanism for local authorities. We are reviewing new burdens funding to ensure councils are appropriately resourced, and have announced £10 million to tackle long-term vacancies and bring empty units back into productive use. On business rates, this Government are committed to reforming the system to create a fairer approach that fully supports investments and high streets such as my hon. Friend’s.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

11. What support her Department is providing to councils to help them use their housing revenue account to build council houses.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

13. What assessment she has made of the potential impact of housing revenue account debt on the ability of local authorities to maintain and increase council housing stock.

[The Minister for Housing and Planning (Matthew Pennycook)]

We recognise that many councils are facing significant financial pressure on their HRAs. The Government have already taken a number of steps to rebuild the capacity of councils to borrow and invest in new and existing homes, including fundamental reform of the right to buy scheme, a 10-year social housing rent settlement and social rent convergence. We will continue to explore further ways in which we might support councils to expand their stock of social homes, including low-cost borrowing options.

[Jayne Kirkham]

This Government have committed to council housing and taken steps to boost it, which is fantastic. Cornwall council’s housing revenue account has struggled to build because it has had to invest in repairs, meaning that it has had to reduce the amount of funds available annually for new homes. Of course, another of the barriers to delivering new council homes is debt; over £90 million of it is the result of self-financing arrangements dating back to 2012. If that debt were reduced, Cornwall council and others could do more. Will the Government consider options to write off HRA debt, or at least provide lower-cost financing such as that made available to registered providers through the National Housing Bank?

[Matthew Pennycook]

As I made clear, we have already acted to build capacity in the sector, and will continue to explore further ways in which we might increase the headroom available to councils and housing associations, not least through low-cost borrowing options. With regard to the HRA, we remain of the view that the principle of self-financing is the right foundation, but as I said, we are fully aware of the impact of HRA debt on many councils’ ability to build more and will continue to explore ways in which we might further support them.