Vital maintenance work will be hit whether the government doesn’t compensate councils – and writing off historic and unfair debt is the way to conclude it
The government’s proposal to cut social housing rent by 1% a year for four years will come as a welcome change to council tenants used to above-inflation increases. However,what we gain in lower rent we will lose in a reduced service.
Under the unusual rents, in Swindon the housing revenue account (HRA) – which is made up of tenants’ rent and service charges – will lose more than £9m. The consequence will be a capital budget cut of around £2m a year, and nearly 12%. This means scaling back on maintenance,and renewal of key components such as windows, kitchens and bathrooms.
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Source: theguardian.com