Ealing Labour Party

Ealing Labour rejects Tory Government rent rises

20/1/12

Ealing Labour's Cabinet will reject Government recommendations to increase council housing rents levels at their meeting next week and set out an investment strategy that will benefit tenants and leaseholders across the Borough. The Tory led government has recommended that councils should raise rent levels for existing secure tenants by 7.7% for the financial year 2012/13. The Labour administration is proposing to increase it by 6.7%. This will increase the average rent by £44.72 a year less than the Government wants.

The recommendations are part of the annual budget setting for the council's housing revenue account. Government sets guideline rents on how much rents should be increased each year using a formula as part of rent restructuring. Councils have discretion to set rent increases below the recommended amount but have to cover the cost of doing so themselves if they choose this option. The money raised through rent is ring fenced and has to be spent on maintaining housing stock and housing management services. This year is the final year of the national system, which will mean the council alone will be responsible for managing the housing rent account from April 2012. This makes it difficult to set a rate too far below the guideline rent or Ealing tenants will lose out on improvements to their homes in the future.

Labour's Cabinet member for housing Cllr Hitesh Tailor said "I wrote to the Housing Minister last year to reduce the impact on tenants of high inflation and this request was ignored. This year inflation is even higher and I fully recognise the need to balance the financial burden on our tenants with the need to secure the investment that our housing stock needs including Copley Close. Our proposal for rent levels does this. Bringing our housing management back under council control has already delivered significant savings by eliminating duplication whilst allowing us to improve the service that our residents receive."

Labour leader Cllr Julian Bell added "As an administration we have made value for money key in everything we do. I feel the Government's proposal does not do this. Our proposal is fair for tenants whilst allowing the council to invest in maintaining our stock for now and the future. We value social housing and the tenants who occupy them much more than the Government does."