LGA responds to Government's housing strategy announcement
LGA media release 21 November 2011
Responding to the Government's announcement today on housing strategy, Councillor David Parsons, Chair of the LGA's Environment and Housing Board, said:
"The opportunity for councils to run their own housing stock independently is good news for tenants and local taxpayers.
"Councils are trusted by local people to ensure that housing meets the needs which they highlighted in their local plans. Councils make a real difference to those needing social housing and help avoid the costs to society caused by insufficient and poor quality housing.
"It is also positive that all developments will now be subject to guarantees that they must bring social, economic and environmental benefits to the local area. However, it remains vital that transitional arrangements are put in place before the new system starts.
"As the most efficient part of the public sector, councils are able to effectively manage their housing stock, ensuring that the books are balanced, benefiting the local taxpayer. Councils are also able to provide excellent value for money by building new homes, and do so at around £10,000 per home less than housing associations.
"It is disappointing that the Government has increased councils' housing debt by over £2 billion in line with September's inflation level of 5.6 per cent (RPI). Inflation was at its highest level in September since it started being measured in 1997 – and is therefore an unfair month to base long-term decisions on.
"Despite other measures being introduced which resulted in the final debt figure dropping to £1.2 billion; this still represents a big hit to councils. Being saddled with billions of pounds worth of debt is going to severely restrict councils' ability to improve quality housing and invest in new homes to meet future needs. This is vital to help grow the economy.
"When this is combined with the Government's plans to keep the vast majority of right-to-buy receipts and the restrictions on councils' borrowing ability, the higher debt levels could seriously undermine the future of council housing."
ends
Author: LGA Media Office
Contact: LGA Media Office, Telephone: 020 7664 3333
Notes to editors
More details on the Government's housing strategy can be found here:
New strategy to deliver homes and strengthen the economy – on the Communities and Local Government website.
1 December 2011
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