Government budget impacts on District’s social housing plan

Government budget impacts on District’s social housing plan - Cannock Chase Council

A report to Cabinet has highlighted how the Government’s announcement to reduce social rents by 1% for 4 years from April 2016 will impact on the new build programme for social housing in the District

The report shows that 129 dwellings were planned as part of the Council's new build programme.  However there is a potential shortfall on the approved Capital Programme for 2017-18 of £1.8 million.  This means that only 88 dwellings will be built, 65 as part of the Moss Road Estate redevelopment scheme and 23 as part of the Green Lane Housing Scheme.  The balance of 41 new houses will only proceed to contract if the Council can afford to after a review of its Housing Business Plan.

It is proposed that the Council challenges the proposals to reduce rent by 1% per annum for the next 4 years, on the grounds that it is not in accordance with the Government Social Rent Policy for 2015-16 to 2024-25, is contrary to the Self Financing Regime and has not been subject to consultation.

The Council is lobbying against the Government's Rent Reduction proposals through Cannock Chase MP Amanda Milling and the Housing Minister, Brandon Lewis with regard to the Council's challenge to the Government's proposal.  Further lobbying work has taken place via the District Councils Network (DCN) and the Local Government Association.

Councillor Frank Allen , Housing Portfolio Leader said "The Council has entered into a commitment to build new houses, in support of the Government Policy and implemented a rent freeze in 2015-16 that now puts its medium term financial viability in jeopardy. 

We will be requesting that we have an exemption from the rent reduction requirement to avoid the serious financial difficulties that will be faced and a compensating grant from the government to offset any impact.  If lobbying is unsuccessful, a case for judicial review will need to be determined."

In the meantime there will be a review of the Council's 30 year Business Plan to undertake a full assessment of the implications of the Government's rent reduction proposals and to determine the options available to mitigate the impact.