Housing minister John Healey will unveil long awaited plans to reform the Housing Revenue Account at the Local Government Association annual conference next week.
Construction News understands that Mr Healey will reveal the findings from the HRA review on Tuesday.
It is believed the proposals will give local authorities the freedom and financial clout to start building council housing again, a move hinted at by Mr Healey during his speech at the Chartered Institute of Housing Conference in Harrogate last week.
The former local government minister, has made the decision to hand councils greater financial leeway his “number one” priority for the social housing sector.
While the details of the Government’s plans are still unclear, any significant change to the current subsidy system is likely to be welcomed by councils across the country.
Just last week the LGA published a report that claimed more than 300,000 new homes could be built over the next 10 years, if there was ‘root and branch reform’ of the housing finance system.