Councils' Raids on Tenant Rent Accounts

Councils are drawing millions of pounds from their tenants’ rent account to fund support services for the government’s controversial welfare cuts and prop up their falling budgets.  The social tenant rent raid is revealed by LGC research into 13 councils’ housing revenue account business plans for 2013-14.  These show authorities across England are switching the cost of buildings and services such as libraries, community centres and street lighting from their general funds to the HRA. Almost £5m of these so-called ‘savings’ have been made by just five councils found to be carrying out such transfers. In the most significant shift, Portsmouth City Council predicts it will save £2.1m from its general fund over the next three years by shifting costs linked to libraries, youth clubs, a community centre and car parks to the HRA.  Read more on the Local Government Chronicle website.