The housing revenue account system is independent of the Local Government Finance Settlement 2009-10. The announcement of help for local authorities to reduce their proposed rent increases for 2009-10 was made on 6 March as soon as was possible to do so after listening to the concerns of tenants and local authorities.
Communities and Local Government will be issuing a draft Amending 2009-10 Determination for consultation shortly. This will explain the calculations for revised 2009-10 guideline rents.
Changes in retail price inflation will be considered when we review guideline rents for 2010-11.
No such estimate has been made.
Local authorities’ spending allowances were set in the subsidy determination issued in December 2008, with higher inflation factors incorporated in the calculations than would apply now. We do not propose to revisit and reduce these assumptions in the same way that we are looking to reduce rent increases for 2009-10. Our priority and focus has been on helping council house tenants. We would expect, therefore, that local housing authorities will have the resources necessary to cover any such additional cost.
A letter was sent to councils on 11 March explaining how the revised arrangements will be taken forward.