More local authority landlords have said they will face cash flow problems following changes to the council housing subsidy regime. Last week, several councils said the changes would cost millions of pounds and could lead to service cuts in some areas. Now more authorities have said they face the same difficulties. Several more councils said they expected a big increase in the number of their homes eligible for government compensation because their actual rents are below target. The compensation - called caps and limits payments - is paid a year in arrears. The councils said they would be forced to dip into their housing revenue account reserves - usually used to fund unplanned work - until Whitehall pays the money. They face losing tens of thousands of pounds a year in interest on their housing revenue account.Read the full story on Inside Housing.
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