CIPFA and CIH help local authorities plan for new finance system
The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Chartered Institute of Housing (CIH) have joined forces to help housing authorities prepare for the new housing self-financing system beginning in April 2012.
England’s 171 stock owning authorities will need to get to grips with providing social housing under this new commercially biased framework, requiring new skills and knowledge. Feedback from CIPFA and CIH customers highlighted the huge culture change from the heavily centralised and mechanised arrangements of the outgoing HRA subsidy system.
To get ahead, housing and finance professionals will need to re-model their HRA business plans in conjunction with their tenants; scenario plan likely debt amounts and costs; ensure appropriate governance arrangements are in place; work carefully through the debt pooling and depreciation implications; include the self-financing system in risk management analyses; look for knock-on impacts to and from the general fund; and determine likely treasury management costs, CIPFA and CIH says.
To help, CIPFA has collaborated with CIH to create a new online platform, www.hraselffinancing.org.uk, for local authority professionals preparing for the implementation of self-financing systems in April 2012. It will help practitioners understand the changes and the implications for their organisations. The platform went live on the 23 June 2011.
CIPFA managing director, Jon Graham said: “Feedback from housing authorities tells us many are still wrestling with how the housing self-financing system will operate in practice. Our comprehensive library of information and guidance will help smooth the transition to the new system.”
CIH director of financial policy, Steve Partridge, said: “The self-financing platform is an excellent way for local authorities to ensure they are up to speed with the task in hand and plug potential gaps in their knowledge. The website will offer a range of briefings and case studies as well as the opportunity to feedback latest developments and discuss issues as they arise.”
