Reading's Labour-administration sought our support this evening for a reduction in Council house rent following the Labour government's u-turn on guideline rents for 2009-10.
I welcomed the rent reduction on behalf of the Lib Dem group and made the point again that the above inflation rent rise Labour pushed for in January would have hit many tenants, particularly those in receipt of Housing Benefit (23%) hard. Back then, Labour councillors and officers were urging us to back a 4.9% rent increase!
However in my speech I highlighted the fact that, disgracefully, the Council was being forced by the government to meet the administration costs of this decision in full.
A formal question to Council I had previously tabled confirmed today that officers estimate this figure will amount to in excess of £10,000.
In my view it is shocking that In a recession, when councils are desperately seeking ways to save money, that this Labour government is effectively adding to the financial burden of already cash-strapped local authorities in this way.
The Labour Lead Member for Housing said that she expected the full cost to be even higher once officer time and the cost of recalculating benefits had been taken into account - getting up towards £20k.
However she made no comment about the fact that the Council would be forced to pick up the bill for the government's cock-up. Hardly surprising you could argue when under this government the power for councils have to manage their own housing stock has been consistently undermined.
I wasn't satisified with this and so I tabled an amendment as follows which was passed by both Labour and the Tory groups:
'That the Chief Executive and Leader of the Council be instructed to write to the Minister of State for Housing and Planning welcoming the reduction in guideline rent increase for 2009-10 and the benefits this will bring Council tenants, but also expressing disappointment at the timing and handling of this decision, and the impact it is likely to have on the Council, drawing her attention in particular to:
- The costs which are expected to be incurred to the Council
- The impact on internal budget setting, Housing Revenue Account Balances and delivering quality housing services in Reading
- The brevity of the consultation process"
The dreaded "tenant tax" came up once again: the rent reduction we agreed will mean RBC pays out less in 'negative subidy to make up the shortfall in rent revenue. What a crazy, illogical system!
Or, as someone observed to me recently 'the government will be stealing less of Reading tenants' money this year'.
Labour and the Tories made some feeble points about being against it but seemed satisfied to sit back and do nothing in the hope that the government's long awaited review of housing finance will deliver.
Dream on.
As I said in my speech, Gordon Brown has got too dependent on this particular cash cow - disgracefully taking tenant's cash and clawing it back to be spent in Whitehall and elsewhere - to stop now.
We will continue to campaign for a fairer deal for Council tenants, despite the complacent attitude adopted by the other to parties on the Council.
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