Greater Reading Lib Dems

Reading's Labour administration sought all party support at a Council meeting on Tuesday 31 March for a reduction in Council house rent following the Labour government's u-turn on guideline rents for 2009-10.

Margaret Beckett, Minister for Housing and Planning recently proposed that all councils reduce their council house rents for 2009-10 which was a complete reversal on their previous advice which had been to increase rents substantially above the rate of inflation.

Cllr Daisy Benson welcomed the rent reduction on behalf of the Lib Dem group and made the point that the above inflation rent rise Labour pushed for in January would have hit many tenants, particularly those in receipt of Housing Benefit (23%) hard.

In January, Labour councillors and officers had urged councillors to back a 4.9% rent increase.

Cllr Benson read from a letter issued by the Department for Communities and Local Government which confirmed that Reading Borough Council would be expect to meet the administration costs of bringing forward this rent reduction in full.

A formal question to Council submitted by Cllr Benson confirmed that officers estimate this figure will amount to in excess of Ł10,000 and will have to come out of Council coffers.

The Lib Dems proposed an amendment which was successfully carried requesting that the Chief Executive and Leader of the Council be instructed to write to the Minister of State for Housing and Planning welcoming the reduction in guideline rent increase for 2009-10 and the benefits this will bring Council tenants, but also expressing disappointment at the timing and handling of this decision, and the impact it is likely to have on the Council, drawing her attention in particular to:

The costs which are expected to be incurred to the Council
The impact on internal budget setting, Housing Revenue Account Balances and delivering quality housing services in Reading
The brevity of the consultation process

Cllr Daisy Benson commented:

"While we welcome the rent reduction and the benefits this will bring tenants but we are angry at the inept way that this decision has been handled by the Labour government which we now know has cost Reading Borough Council at least Ł10,000 pounds."

"The cost will include sending new rent demands to all tenants in the Borough - a second time - which many tenants are likely to find confusing."

"It is shocking that in a recession, when many councils including Reading are desperately seeking ways to save money, that this Labour government is adding to the financial burden of already cash-strapped local authorities in this way."

"We sincerely hope that this cock up will not impact on services for residents in Reading."

Cllr Gareth Epps, Lib Dem Group Leader and Lib Dem Prospective Parliamentary Candidate for Reading East added:

"It's time Labour politicians stop treating Council housing as a political football. This rent reduction is not an act of kindness by Labour but an electoral bribe aimed to save council seats in other areas.

"We will continue to campaign for an end to the dreaded 'tenant tax' whereby a significant proportion of Council tenants rent is sucked back to Whitehall.

"Labour should know that reducing the amount stolen from Council tenants by the Treasury doesn't make the theft any less wrong."

Editor's Notes:

Find out more background about the rent reduction and the Lib Dem campaign here:

More information about the government's decision to reduce guideline rents for councils can be found here:

Greater Reading Lib Dems

News

Lib Dems Slam Cost to Reading Borough Council of Labour Government's Election "Bribe"
02 April 2009