"More power, better local housing" says local MP

October 6, 2010 11:00 AM

Due to the shortfall of funding for council tenant housing, Tom Brake MP has announced his support for the new reforms on the Housing Revenue Account. The reforms will be part of the Localism Bill introduced this autumn.

Currently, local councils pay council housing rent to Whitehall which then redistributes funds to local councils for housing maintenance and management. However, there is a £2.35 billion shortfall in allowances between what councils have requested for funds and what they have received. The new system would allow local councils to keep funds from sales and rent to more effectively manage local properties without Whitehall interference.

"Letting local people run local housing is the most effective and fair way to ensure the best service" says Tom Brake. "The current system is complicated, results in unfair allocations, and burdens council tenants to pay even more for the upkeep of their housing."

Moonlight Robbery, a tenant-led campaign to defend council tenants from overpriced housing, says that council tenants will pay £1.7 billion more in rent this year due to compensate for shortfalls in allowances.

Tom continues, "We can use local knowledge of housing needs to better keep track of and allocate funds. Giving more power to local councils means more transparency in the process and less overcharging to council tenants. Tenants will know that the money they pay is going towards improving their property, not sent out across the country".

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