Government pays off a third of Council debts

Greenwich Cabinet was informed on Tuesday evening that it was to be one of the biggest beneficiaries of the Coalition Government’s proposed reform of the way Council housing is funded. 


The Housing Revenue Account (HRA), which previously dealt with the heavily subsidised funding of Council housing, is being abolished as part of the review of local authority grants by the Coalition.  As a result the Council is expected to receive £172m to pay off its debts.  This will reduce total Council debt from £505.5m to 333.5m – a reduction of more than a third. 


Leader of the Conservative Group Cllr Spencer Drury said “Although you won’t see this in Greenwich Time, the Coalition government have decided to give the Labour Council a massive Christmas bonus.  This reduction means that the Council is going to be paying a lot less in interest on its debts and is in a much better financial situation.  If the reforms go through as officers expect, I hope that the Labour Leader will be sending Conservative Local Government Minister a thank you note on behalf of the people of Greenwich.”