In response to the announcement by Chief Secretary to the Treasury, Danny Alexander, regarding the proposed reduction in interest rates for the borrowing under the HRA Self Financing Reforms
Birmingham City Council’s Cabinet Member for Housing, Cllr John Lines, said: “The Council welcomes this proposal, particularly as the city is expecting to be allocated additional debt of almost £400m based on the current national estimates.
“Proposing a reduction in interest rates for the borrowing under the HRA Self Financing Reforms is an indication that the government has listened to the concerns of local authorities and a reflection of the effective joint working between central and local government officers.
“This has the potential to reduce the Council’s HRA borrowing costs for the self financing settlement by up to £3m per annum, providing there are no changes to the current proposals to the level of debt reallocation. The details of the proposal will be evaluated to ensure it provides the maximum benefit for citizens of Birmingham.”
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