Committee publication · Correspondence · 1 July 2026
Letter from the Minister of State for Local Government and Homelessness to the Chair dated 22 June 2026 following up oral evidence given before the Committee on 9 June
From: Housing, Communities and Local Government Committee
Inquiry: The Work of the Ministry of Housing, Communities and Local Government
Summary
Minister Alison McGovern writes to the HCLG Committee Chair following oral evidence on 9 June 2026, addressing four topics raised by committee members: Housing Revenue Account debt (no recalculation planned), local audit reform (91% of 2024/25 opinions published on time via backstop dates), implementation of the Supported Housing Act 2023 (licensing regulations consultation published April 2026), and the discontinued New Homes Bonus (£290m returned to core settlement from 2025-26).
Key findings
- No plans to recalculate HRA self-financing debt; government committed to council housing viability through ten-year rent settlement, £1bn building safety funding, and £39bn Social and Affordable Homes Programme
- Local Audit Office establishment progressing: 91% of 2024/25 audit opinions published on time under backstop dates; deadline for 2025/26 opinions is 31 January 2027
- Supported Housing Act 2023 implementation underway: consultation response published April 2026; further licensing regulations consultation to follow later 2026, with regulations debated when Parliamentary schedule allows
- New Homes Bonus discontinued after 2025-26; £290m returned to core settlement allocated by relative need rather than as incentive; government pursuing 1.5m homes target through mandatory housing targets and planning reform instead
- Local government reorganisation cited as delivering long-term savings: North Yorkshire £90m since April 2023, Buckinghamshire £75m since 2020 with £95.3m further expected by 2027
Tone
ProceduralTopics
Key actors
Alison McGovern MP, Florence Eshalomi MP, Andrew Cooper MP, Chris Curtis MP, Will Forester MP, Local Audit Office, Supported Housing Advisory Panel
Notable line
“… self-financing remains the right principle for local authority housing”
Key Quotes
“There are no current plans to recalculate Housing Revenue Account self-financing debt, and self-financing remains the right principle for local authority housing.”
“At the most recent backstop, 91% of opin- ions for 2024/25 were published on time.”
“… the government does not believe that the New Homes Bonus was an effective incentive 3 . Its design meant it rewarded local authorities for housebuilding that would have occurred in the absence of any incentive.”
“By reducing duplication, cutting waste and saving back-office money, reorganisation will of course free up some money which councils can reinvest into frontline public services …”
Source · parliament.uk record ↗