Council waits for news on rents
Harlow Council is still waiting to hear
whether it will be able to pass on reduction in rent increases to
its tenants.
After the Council set the rents for this year
(2009/10) the Government announced funding to allow councils to
reduce the increase. Unfortunately the rules of the funding
meant the Council would have to cut over £420,000 from its housing
budget, reducing services and repairs.
The Council approached the Communities and
Local Government (CLG) department with solutions to the problem but
did not receive a positive response. During August 2009 it
put forward further alternatives but has since been waiting to see
whether these will be accepted.
Councillor Lee Dangerfield, Chairman of the
Council’s Housing Committee, said: “We have been waiting for
over three months to hear back from CLG. We haven’t rejected
any offer, the ball is very much in their court and we and our
tenants are waiting patiently for news.
“We want to pass on rent increase reductions
to our tenants. That’s why we are doing everything we can and
putting forward proposals to CLG. We just want to find a way
which doesn’t mean we face cutting the services we provide to our
tenants. Our proposal reduces this year’s rent increase for tenants
and safeguards services.”
Councillor Simon Carter, Chairman of the
Council’s Policy and Resources Committee, added: “In August we
suggested to CLG that the interest rate element of the housing
subsidy system they changed this year is back dated to last year
when the problem first arose. This would give us
approximately £440,000, meaning we could comply with the rent
offer. The other concern is if the backdating doesn’t happen
we could be left with a shortfall every year.
“We really need to know what is going on so we
can plan for now and for the future and let our tenants know what
is happening. With Christmas approaching news that our proposal has
been accepted would be a fantastic boost for our tenants.”
Ends
Please follow this link to view past press releases on this
issue:
Press release issued in September 2009.
Press
release issued in August 2009.
Press
release issued in May 2009.