A SENIOR councillor has heralded plans from the government to remove the cap on finances dedicated to social housing.

Bournemouth housing portfolio holder Cllr Bob Lawton said the proposals for Housing Revenue Accounts (HRA), which will be updated by the chancellor in his budget later this month, were "extremely good news".

Members of the Bournemouth, Christchurch and Poole Shadow Authority executive committee were told that an agreement had been reached to combine the current HRA caps in Bournemouth, £69m, and Poole, £100m, for the new unitary authority.

However, Adam Richens, interim chief financial officer the Shadow Authority, said he understands the cap on HRAs is set to removed by the government.

Cllr Lawton said this was "pleasing" and addressed an issue that effects councillors across the conurbation.

"We have around 5,500 council houses in Bournemouth, which we run efficiently and professionally," Cllr Lawton said.

"This removal of the HRA cap is really, really good news for all of us. We wait with baited breath the chancellor's interpretation as the devil is always in the detail, but it's extremely good news for Bournemouth, Poole and Christchurch, and certainly going forward with LGR."