The disappearance of Housing Association debt (from the National Accounts)

In a statement late last week the ONS announced they now are treating housing associations as part of the Private sector in the National Accounts.

Practically, this means the published National Debt figure (Public Sector Net Debt) falls by about £70bn as Housing Association's borrowings are no longer included within the total £1.8 trillion of government debt - they are not part of the state anymore.

It's not really cause for celebration however - Housing Associations and their debt only came onto the Government's books in 2015 after the government strengthened its powers over them - basically to be able to force them to sell their properties to tenants, to support a manifesto pledge. 

So this doesn't really represent government action to tackle our ballooning public debt - or change anything else of economic substance very much. Unfortunately we still have a (debt) mountain to climb!