Housing Revenue Account (HRA) Statistics: Scottish Local Authority Housing Income and Expenditure 1997-98 to 2020-21 (actuals) 2021-22 (estimates)

Capital debt (table 21, table 1a)

39. A Local Authority may borrow to fund capital expenditure. Local Authorities may borrow from a number of sources including banks and other financial institutions. Most Local Authorities borrow from the UK Government's Public Works Loan Board (PWLB). In addition to borrowing Local Authorities may finance capital investment through other credit arrangements, such as finance leases, Public-Private Partnership (PPP) or Public Finance Initiatives (PFI). The sum of borrowing and any credit arrangement to finance capital investment is termed Capital Debt.

40. Total council housing debt stood at £4.23bn in 2020-21 an increase of £208m (5.2%) on the previous year and cost £288m in loan charges. Part of the increase in debt since 2007 is a consequence of increased borrowing by councils to meet the capital costs of new build housing and improvements to existing houses and reductions in receipts from the sale of council houses under RtB scheme which closed on 31 July 2016. Total HRA debt is estimated to rise to £4.88bn by 2021-22 (up £646m).