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DCH 2009 'HRA Ready Reckoner'

'HRA Ready Reckoner'
Analysis of Local Authority Housing Revenue Accounts and level of allowances to cover 'need to spend' (now using data from the Draft Subsidy Determination 2009/10)
Government is proposing to increase the robbery from tenants rents next year (2009-10) by another £248 million! The Treasury plans to take £1.83 billion from tenants rents (difference between total rents and total allowances). Allowances to local authorities will remain massively underfunded whilst rents are rising faster than inflation (6.2% in 2009/10 year and 6.1% 2010/11).
The Department for Communities and Local Government (CLG) has commissioned new research (August 2008) from the Building Research Establishment and Housing Quality Network into the level that Management & Maintenance Allowance (M&M) and Major Repairs Allowance (MRA) provided to local authorities need to be. The research has been done but the reports still have not been published even though they we were promised they would be available (October 2008) to inform the government's 'Review of Council Housing Finance'.
See what your authority should be receiving if government funded allowances at level of need (based on existing research).
Select your authority from the list below to see details of the existing Housing Revenue Account (HRA) and the difference that government agreeing to fully fund allowances would make (see assumptions used).
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  Assumptions
  The figures for the current position are taken from the Department of Communities and Local Government (DCLG) draft subsidy determination for 2009/10 (Data Outputs Fixed Percentage Variant)
The estimated 'Need to spend' on the Management & Maintenance Allowance is based on the current level plus 40% as in the Building Research Establishment's analysis ('Estimation of the need to spend on maintenance and management in the local authority housing stock', June 2003).
The estimated 'Need to spend' on the Major Repairs Allowance is based on the current level plus an extra 75% - the amount indicated by the self-financing pilot results ('Self Financing of council housing services: a modelling exercise', DCLG, March 2008).
Figures for ‘subsidy’ are approximate as we have used a global interest rate of 7.2% to calculate subsidy for debt. The total for England is correct on this basis but as each authority has its own interest rate individual figures may vary.
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