Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Local authority definition

What does Local authority mean? In legal practice, a local authority is the elected council that provides local government for a defined area, exercising statutory functions including planning, housing, social care, education, highways, environmental health, licensing, and the collection of council tax or rates. The expression appears widely in legislation and case law; its precise scope is set by the relevant statute. England: county councils and district councils (including metropolitan boroughs), unitary authorities, London Boroughs and the Common Council of the City of London; parish and town councils are local authorities at the most local tier. Wales: unitary county and county borough councils. Scotland: the...

Housing Revenue Account (England and Wales): ring-fence, self-financing, borrowing, rent policy, Right to Buy, accounting duties, risks and future reforms

Published by a LexisNexis Local Government expert

Practice notes

Practice Note

This Practice Note outlines how the housing revenue account (HRA) operates in England, its evolution, the key characteristics of the HRA, the move to self-financing and the attendant risks of self-funding. It also reviews policy choices that have affected the HRA, including social rent reductions and the right to buy. In strict terms, HRA legislation covers only local housing authorities (LHAs) as described in section 1 of the Housing Act 1985 (HA 1985) and section 88 of the Local Government and Housing Act 1989 (LGHA 1989). HA 1985 does not extend to Scotland but does to Wales by virtue of section 22(2) of the Local Government (Wales) Act 1994 (LG(W)A 1994) and LG(W)A 1994, Sch 8, para 5(1). Under LGHA 1989, s 74, LHAs must maintain an HRA unless the Secretary of State has agreed otherwise (typically where an LHA has disposed of all its stock). In Wales, following devolution, the Secretary of State’s functions transferred to the Welsh Assembly from 1999. The account must record credits and debits resulting from an LHA’s role as owner of land and dwellings, obtained or supplied under statutory powers, including those found in the Land Compensation Act and associated statutory powers as...

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Web page updated on 21/05/2026

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