News from Westminster Labour

District Auditor should investigate Westminster City Council’s housing subsidies

Labour Councillors have called for the District Auditor to investigate Westminster City Council’s use of public money to subsidise single working people who earn up to £30,000 to rent a 1 bed flat.

This follows the announcement that the Conservative run council has spent £250,000 buying a 1 bed flat in Orsett Terrace in Bayswater and plans to rent it out to a single person earning £30,000 a year for a subsidised rent of £120 per week, with a free ‘bonus’ of £2,500 after 5 years.

The Council plans to spend £7 million buying 1 bed flats so that it can rent them out to young people earning up to £30,000 a year. There are no provisions or safeguards to ensure that tenants will use the free £2,500 bonus save up to build up a mortgage deposit, nor are there any safeguards to stop people sub-letting at premium rents.

Councillor Guthrie McKie, Labour Spokesperson for Housing, said:

“This really stinks. The Conservatives say that their housing policy is about creating mixed communities. Now the taxpayer is being asked to pay for a scheme that will benefit young working people earning up to £30,000 and has the potential to be openly abused. Such schemes are not being made available to the 2,000 families in housing need who are living in sub standard temporary accommodation.

“We are calling on the District Auditor to investigate this misuse of public money. This is social engineering at its worst. It is a kick in the teeth for the many hard working tenants and leaseholders who will see some of their hard-earned tax money being squandered on the Conservatives’ barmy social engineering schemes.”

Other news from Westminster Labour

• Labour's five point plan for fairer parking in Westminster - 15 March 2010
• 5-star dinner as Westminster's "Dinosaur" Conservatives axe hotlines - 12 March 2010
• Westminster Labour welcomes dog micro-chipping plan - 11 March 2010