Milton Keynes opted to deliver decent homes through a stock retention strategy using their existing funding streams.
The funding streams that the Department awards for spending on the improvement of council housing are supported borrowing and the major repairs allowance (introduced in 2001-02). Supported borrowing is where the Government pays the interest on local authority borrowing, allowing it to borrow for capital works to the stock.
Prior to 2006-2007 private sector renewal funding was included in the local authorities supported borrowing. This has since moved to a capital grant and is therefore no longer recorded in these data which explains the reduction in between 2005-06 and 2006-07.
The following table shows the major repairs allowance from its introduction in 2001-02 and the supported borrowing of Milton Keynes unitary authority for each of the last ten years.
Major repairs allowance Supported borrowing 1997-98 n/a 2,376,000 1998-99 n/a 2,520,000 1999-2000 n/a 2,514,000 2000-01 n/a 4,843,000 2001-02 7,165,994 1,381,000 2002-03 7,261,700 1,517,000 2003-04 7,303,889 1,655,000 2004-05 7,211,639 1,941,000 2005-06 7,698,283 2,017,000 2006-07 7,550,439 832,000 2007-08 7,627,807 832,000
In addition local authorities may also borrow prudentially (receiving no Government support for the interest payments) and they can use any capital receipts they have.