Will Osborne listen to Boris and allow councils to borrow to build?

The Mayor's call for the removal of the cap on council borrowing for house building could be answered in the Spending Review.

Among the florid prose of Boris Johnson's 2020 Vision were some significant political interventions, none more so than the call for the government to lift the cap on councils' borrowing and allow them to build more affordable housing. Boris wrote: 

We should allow London’s councils to borrow more for house building - as they do on continental Europe - since the public sector clearly gains a bankable asset and there is no need for this to appear on the books as public borrowing.
In policy terms, it is a no-brainer. The Chartered Institute of Housing estimates that raising the caps by £7bn could enable the construction of 60,000 homes over the next five years, creating 23,500 jobs and adding £5.6bn to the economy.
 
George Osborne's ideological aversion to borrowing and to social housing means he has so far refused to act, but could a U-turn be on the cards?
 
Recently asked by Green MP Caroline Lucas whether the government would "look again at lifting the current cap on council borrowing for house building, and at providing direct capital spending to allow councils to build a mass programme of affordable housing?" Communities minister Don Foster replied: "We are looking at the point the hon. Lady has raised, and an announcement will be made on 26 June."
 
26 June is the date of the Spending Review. Is Osborne finally about to remove this block to house building? Let's hope so. 
George Osborne and Boris Johnson talk together during their visit to the Riverlight construction site in London. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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New Digital Editor: Serena Kutchinsky

The New Statesman appoints Serena Kutchinsky as Digital Editor.

Serena Kutchinsky is to join the New Statesman as digital editor in September. She will lead the expansion of the New Statesman across a variety of digital platforms.

Serena has over a decade of experience working in digital media and is currently the digital editor of Newsweek Europe. Since she joined the title, traffic to the website has increased by almost 250 per cent. Previously, Serena was the digital editor of Prospect magazine and also the assistant digital editor of the Sunday Times - part of the team which launched the Sunday Times website and tablet editions.

Jason Cowley, New Statesman editor, said: “Serena joins us at a great time for the New Statesman, and, building on the excellent work of recent years, she has just the skills and experience we need to help lead the next stage of our expansion as a print-digital hybrid.”

Serena Kutchinsky said: “I am delighted to be joining the New Statesman team and to have the opportunity to drive forward its digital strategy. The website is already established as the home of free-thinking journalism online in the UK and I look forward to leading our expansion and growing the global readership of this historic title.

In June, the New Statesman website recorded record traffic figures when more than four million unique users read more than 27 million pages. The circulation of the weekly magazine is growing steadily and now stands at 33,400, the highest it has been since the early 1980s.