Lansley meets with the shadow housing minister and calls for a fair deal on housing stock.
04 February 2010
Andrew Lansley CBE MP for South Cambridgeshire today met with Shadow Housing Minister Grant Shapps MP, alongside leader of the Council Cllr Ray Manning and Cllr Tim Wotherspoon portfolio holder for Northstowe, to discuss the current system of housing revenue accounts and the negative subsidy that South Cambridgeshire currently receives.
The Housing Revenue account system- which requires councils to record all revenue and expenditure in relation to council housing- has consistently required South Cambridgeshire to pay a negative subsidy, returning money to central Government. South Cambridgeshire is penalised as current criteria only take into account the need for maintenance of existing housing stock, rather the need for new stock to be added. This has ensured that South Cambs District Council has had to find alternate sources of revenue, causing services such as the provision of wardens in sheltered housing to be scaled back.
Whilst the Government have announced plans to reform the Housing Revenue Account system, Mr Lansley expressed concerns that the Governments reforms would continue to inadequately reflect South Cambridgeshire’s needs.
Commenting Mr Lansley remarked
“Under the Labour Government, South Cambridgeshire has consistently received a poor deal. Whilst reform is needed, there are serious concerns about what current proposals would mean for Cambridgeshire. Current plans would require a one off redistribution of housing debt, which could burden responsible councils, like South Cambridgeshire, with the debt of other areas.
I, with District Councillors, have met with the shadow housing minister to ensure that, under a Conservative Government, South Cambridgeshire gets a fair deal on the funding for its housing stock”
Commenting on this matter, leader of South Cambs District Council Cllr Ray Manning added
“The present system is unfair to South Cambs District Council and means that our tenants are effectively income taxed at 55 pence in the pound as this Government now takes 55% of their rent money. This is over £1 million per month that this Council cannot use for providing Wardens, repairs and maintenance. Instead of recognising that it is another unfair "stealth tax" and abolishing it, the latest proposal is to give us a debt of about £ 164 million built up by other areas. Instead of paying a "Tenant Tax" on the rent money we will be paying interest and repaying other Councils debts. The profligate Councils will gain from this, our responsible Council will continue to suffer”.
The Housing Revenue account system- which requires councils to record all revenue and expenditure in relation to council housing- has consistently required South Cambridgeshire to pay a negative subsidy, returning money to central Government. South Cambridgeshire is penalised as current criteria only take into account the need for maintenance of existing housing stock, rather the need for new stock to be added. This has ensured that South Cambs District Council has had to find alternate sources of revenue, causing services such as the provision of wardens in sheltered housing to be scaled back.
Whilst the Government have announced plans to reform the Housing Revenue Account system, Mr Lansley expressed concerns that the Governments reforms would continue to inadequately reflect South Cambridgeshire’s needs.
Commenting Mr Lansley remarked
“Under the Labour Government, South Cambridgeshire has consistently received a poor deal. Whilst reform is needed, there are serious concerns about what current proposals would mean for Cambridgeshire. Current plans would require a one off redistribution of housing debt, which could burden responsible councils, like South Cambridgeshire, with the debt of other areas.
I, with District Councillors, have met with the shadow housing minister to ensure that, under a Conservative Government, South Cambridgeshire gets a fair deal on the funding for its housing stock”
Commenting on this matter, leader of South Cambs District Council Cllr Ray Manning added
“The present system is unfair to South Cambs District Council and means that our tenants are effectively income taxed at 55 pence in the pound as this Government now takes 55% of their rent money. This is over £1 million per month that this Council cannot use for providing Wardens, repairs and maintenance. Instead of recognising that it is another unfair "stealth tax" and abolishing it, the latest proposal is to give us a debt of about £ 164 million built up by other areas. Instead of paying a "Tenant Tax" on the rent money we will be paying interest and repaying other Councils debts. The profligate Councils will gain from this, our responsible Council will continue to suffer”.