Response to consultation paper for pooling of housing receipts

Was wondering what other peoples view is on the recent consultation paper for the pooling of housing receipts?

As they are extending the treasury share cap over the next few years but continuing using the same formula which relies on the average capital receipt received less the discount for 2008/09 2009/10 and 2010/11 which during those years the discount amount was capped at £24,000, however since 2012/13 when the discount cap was removed our average discount amount since then is £41,576. Therefor this reduces our capital receipt received after the discount quite considerably.

This means in order for us to take advantage of the retained RTB monies we have to sell a lot more properties than on their forecast which seems counter intuitive as they want us to increase our stock?

Link for consultation paper www.gov.uk/.../local-authorities-capital-finance-regulations
  • Good spot, Andrew, will check impact for MK.

    I think that the more LAs incorporate into their responses arguments to abolish pooling (whether explicitly or by adjusting formulae to give nil poolable amounts) in order to maximise LA new build capacity (preferably with worked examples) the better. May not have much of an impact on its own, but may add to total pressure.

    We'll also consider briefing local MPs similarly on the impact of maintaining pooling, just in case they want to help!
  • Andrew - I'd be interested to know how the recalculation of share caps (to take account of increased RTB discount) would impact on your LA share and 1-4-1 retained element?
    I fear that although the treasury share would reduce, so would the LA share, with the difference being added to the 1-4-1 retained element. Although the prospect of returning less to the treasury may be attractive, the transfer of some of the LA share to the 1-4-1 pot (with all of its restrictions) may not be worth it for the amounts involved?