Councils Face New Year Rent Headache

Councils are facing potential cash flow problems after the government altered the council housing subsidy regime. Some councils revealed the changes would cost them millions of pounds and could lead to service cuts. The situation is likely to result in some councils dipping into their housing revenue account reserves to tide them over - meaning they could struggle to fund unplanned work. The changes involve the system under which council rents are due to increase to the same level as housing association rents.Read the full story on the Inside Housing website.