Freezing rents ensures 'committment to value for money'
Ealing Labour’s Cabinet are proposing to reject Government recommendations to increase council housing rents levels above the level of inflation at their meeting next week. The government has recommended that local authorities should raise rent levels for existing secure tenants by 6% for the financial year 2011/12. The Labour administration is proposing a real term freeze by increasing rents only by the level of inflation, which is currently 4.7%. This will increase the average rent by £3.86 a week.
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.
Labour’s Cabinet member for housing Cllr Hitesh Tailor said “During these difficult financial times we didn’t feel it would be right to increase rental charges to our residents by the amount the government is suggesting. We needed to balance the financial burden on our tenants with the need to secure the investment that our housing stock needs. Keeping rent levels frozen in real terms does this. We will also be bringing our housing management back under council control, which will deliver significant savings by eliminating duplication whilst allowing us to improve the service that or residents receive. ”
Liberal Democrat Councillor for Southfield Ward Gary Malcolm responded to the announcement by agreeing that this is the right approach, "given the difficult financial times many residents in Ealing are feeling.
''We also think that the Council need to be proactive in both ensuring that regeneration of our estates happens as well as cutting out spending on things that do not matter to most residents, like expensive areas of the Council including some of the media team's activities. This way front-line services can be maintained giving residents a better deal."
Labour leader Cllr Julian Bell added “As an administration we have made value for money a key theme in everything we do. I feel that a real term freeze for council tenants does deliver value for money whilst allowing the council to invest in maintaining our stock in a time of financial pressure for the authority. ”
The Ealing Conservatives did not offer a response to queries about this issue.
19 January 2011