Back in January I blogged about the debate in Council about setting next year's council house rent, including the Lib Dem campaign to end the hated 'tenant tax' whereby millions of pound council tenants' rent are sucked back to Whitehall.
Less three months since then the Labour government hasexecuted an embarrassing U-turn on housing policy: halving the guideline rent increase the government expected councils to collect from council tenants from a massive 6.2% to 3.1% (with the help of government cash).
Next year's council house rent in Reading has been set at inflation busting 4.9%. I made the point at the January council meeting where this was discussed that this rise would be particularly hard on those tenants not in receipt of housing benefit (I think it's about 25% of tenants) and could lead more people in Reading going into debt.
We supported the rise on the basis that Labour politicians locally pledge to reform the system of negative subsidy system, better known as the tenant tax, urgently, which they did.
Cllr Ennis, then Lead Member for Housing spoke in the debate and backed our campaign: I will be following this matter up with the new Lead Member, Cllr Edwards, to see what she personally is doing to hasten the end of this hated system.
The government is conducting a review of council housing finance system at the moment, but I can't see the Treasury losing it's appetite for sucking in tenants' cash in a hurry after it has been dependent on it for so long.
Back-tracking on unpopular housing policies and decisions is something that local Labour councillors do on a regular basis (usually in response to sustained Lib Dem pressure, the Tories are usually pretty silent on housing matters).
Recently this included supporting our empty homes campaign, and at the eleventh-hour backing our call for a fair deal for Council tenants.
Housing Minister Margaret Beckett, who came to Reading in December said on Friday:
"We have listened to what councils and their tenants have said to us about the planned rent increases, and we are determined to help tenants get a fair and affordable deal.
‘Ultimately, it is for each council to take up this offer of support, but I would expect them to ensure their tenants receive the full benefits.’
Inside Housing's article suggests that this move follows serious lobbying by councils up and down the country.
My view is that in reality this concession has far more to do with saving (Labour) council seats at the upcoming local elections.
As campaign group Defend Council Housing explains:
"this announcement still means that government will be making a big profit from council tenants in 2009/10 and many authorities will be short of money to manage, maintain repair and improve their homes and that's just not acceptable."
I have written to senior officers in Reading Borough Council asking them whether RBC tenants will indeed benefit from this move and get a rebate on next year's rent.
The fight for a fairer deal for Council tenants continues. I will post my response from officers in due course.
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