Some information has been released as to what will be included in the Localism Bill which is intended to transform Local Government.
Grant Shapps the Housing Minister announced on 5 October 2010 that Councils would be able to keep all the rents and sales they collect from any sales of land or homes. This will replace the current Housing Revenue Account subsidy system which Council's receive from Central Government. The existing process involves the receipts being transferred to Central Government which then reallocates nationally through central government.
The Department's news release states that "In return for this greater freedom, some councils would take on additional housing debt - but no council will take on a level of debt that is not sustainable for the long term."
These reforms will be packaged up in the Spending Review on 20 October 2010 and is proposed to be introduced through the Localism Bill. It will be interesting to see how the potential for the increase in the divide between the cash rich and cash poor authorities and the gap between the rich and poor areas will be addressed.