Oral Answers to Questions

Meg Hillier Excerpts

Monday 7th September 2026 Commons Chamber

[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.

--- Later in debate ---

[Dame Meg Hillier]

My right hon. Friend is aware of the challenges with housing in my constituency and across London. Every home built that provides a foundation for people’s lives saves the state money as well, given the temporary accommodation costs that are saved when people are able to get that foundation in life. Will my right hon. Friend undertake to talk to Treasury colleagues about how to look at those maths, to make sure we understand that tackling issues with debt can save money in the long term? I recognise that it might be a long haul, but will he promise to start?

[Matthew Pennycook]

My hon. Friend is absolutely right about the importance of building more homes in London—I am acutely aware of the housing delivery challenges that the capital is facing. It is really important that a big proportion of those homes are social rented homes and council-delivered social rented homes. I am really pleased that in the early years of the social and affordable homes programme, 30% of the funding will go to London. That will allow London to deliver at least £6 billion of initial allocations, over half of which will be for council housing. However, there is more we need to do in this area, and I am more than happy to have a discussion with my hon. Friend outside the Chamber about what that is.