The CLG has set out information and guidance for councils
considering applications for exemption from the mandatory four year 1% rent
reduction. The information and guidance
makes it clear that the Secretary of State will only consider granting an
exemption if it is the only way to avoid the authority's Housing Revenue
Account falling into serious financial difficulties. Any council considering applying
for an exemption from the mandatory 1% rent reduction will need to demonstrate
that they have considered all other options for reducing expenditure in line
with reduced rental income including looking at existing contractual
commitments. Download the guidance from the CLG website.
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