Each year more than 150 councils are forced to hand over a large share of the rent they collect from their tenants and pay it into a government pot. This money is redistributed to around 50 other council landlords who use the funds to provide housing services. This tax on the least well-off members of society is made even more unfair by the fact that this year, the government will keep nearly £200-million to fund public services that do not directly benefit tenants.
The Government is reviewing the way that local authority housing finance is managed locally and nationally and is opening up a dialogue with housing practitioners, tenants and other stakeholders on the Housing Revenue Account.
As local councils, we need to develop a range of arguments and submit supporting evidence to the government, which can be considered as part of their review of housing subsidy.