News from Cornwall Labour

Labour offers Cornwall Council new homes deal

Charlotte MacKenzie welcomes Labour’s shake up of funding for council homes.

Housing Minister John Healey MP announced Labour will give Councils new freedoms to fund and run their local housing stock. Cornwall Council already has some Labour Government funding to build new Council homes. The new system will release at least 10 per cent more money to build new council homes.

Tenants – like those in Carrick Housing – whose homes have been upgraded through the decent homes programme will have guaranteed future funding to maintain high standards backed by a new national regulator, the Tenant Services Authority.

Charlotte MacKenzie said: “These proposals are exactly what Cornwall Council needs to make the most of its existing housing stock and to invest in more new homes to meet local housing need. I hope Cornwall Council will respond positively to the opportunity to start working in this way from next year, it will help speed up delivery of new homes for local people in housing need; and keep the revenue from Council housing stock in Cornwall.”

Sarah Webb, Chief Executive of the Chartered Institute of Housing said: “We are delighted at the Government’s clear commitment to new council house building and are also very pleased that our work to help shape a new self-financing future for councils has been taken on board.”

The plans mean dismantling the old ‘Housing Revenue Account’ system which has long been criticised by local government. Established initially in the 1930s, the HRA system was reinforced by Margaret Thatcher in the 1980s as a way of discouraging authorities from building new council housing.

Under the new system, councils will keep all rent collected as well as all receipts from sales of housing or land. Not a single penny will go elsewhere. Councils will have to accept a share of an additional £3.65 billion debt, but none would take on debt that was not sustainable in the long term.

The consultation document, Council Housing: A real future seeks the views of councils on implementing the new system. Responses are required by 6 July 2010. More information and the consultation document can be found at: http://www.communities.gov.uk/housing/decenthomes/councilhousingfinance/

The new system would be implemented voluntarily where Councils agree from 2011-12, and addresses concerns raised by local government about the current HRA system. The need to reform the HRA has cross-party support.

However, other housing plans under consideration by the Tories could make council tenancies less secure.

Other news from Cornwall Labour

• Hundreds sign Falmouth for Orders petition - 30 January 2012
• Labour and unions campaign for dredging the port of Falmouth - 18 January 2012
• Regional funding put at risk by ministers' failure to act - 8 January 2012