Council house rent rises 'reluctantly' approved despite residents 'struggling badly'
Rent rises of seven per cent in council run homes have been ‘reluctantly’ approved by the cabinet in order to balance the books, Wigan Town Hall heard. Chairing the Housing Advisory Panel, Coun Susan Gambles - with a look of dread on her face - brought this item to a room full of tenant representatives - who understood that this ‘must be done’ in order to keep the Housing Revenue Account financially sustainable.
Paul McKevitt, director of Resources and Contracts and deputy chief executive, explained that the cost for meeting these requirements could cost the council hundreds of millions of pounds, the panel heard on November 24.Mr McKevitt went on to say that the costs of maintaining council housing services is increasing as well - which this rise would see continued without putting the council in debt.
“Government policy is dictating this paper and we have already lost £30 million [in the housing budget]. This [cost increases and rent rises] is the perfect storm and it is a tidal wave.“We are doing what we can but it won’t be enough. We need to work to keep people safe and maintain our services.”
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