District council calls on government to take urgent action to combat council housing funding shortage
Lewes District Council has passed a motion calling for urgent government action to end what it says is a crisis in council housing funding and homelessness.
The motion took the form of a five-point plan appealing to the Government to:
- establish a new fair and sustainable Housing Revenue Account model - including an urgent one-off cash injection, and long-term, certain rent and debt agreements;
- reform “unsustainable” Right to Buy policies, including phasing them out altogether;
- remove red tape on existing funding;
- announce a new, long-term green and decent homes programme;
- fund the completion of new council homes.
Lewes was one of 100 councils to write recently to the Government calling for the introduction of fairer funding for temporary accommodation by removing the cap based on the 2011 Local Housing Allowance rate.
The councils said the new mechanism should:
- fund 90% of the actual cost for 2023/24 until the long-term strategy to end homelessness is developed;
- give a three-year Homelessness Prevention Grant allocation; and
- review the formula to ensure it is targeted to those that have the biggest demand linked to those who can show they are working in line with good practice.
Cllr Lucy Agace, who submitted the motion, said: "The financial model for England's council housing system is broken. Capped income, unfunded new requirements and soaring costs have decimated council housing budgets. We want to invest in desperately needed new council properties, ensure our repairs and maintenance service is robust, and make our existing homes more energy efficient. But without critical changes to government policy, it will be impossible for us and other councils to achieve all our aims."
Cllr Zoe Nicholson, Leader of Lewes District Council, said: "It is critical that we provide a safety net for people, but the financial impact is putting that safety net at great risk of failing. The current system leaves about 80% of the cost of temporary accommodation to be funded by local authorities. This is disproportionate and unsustainable. Many councils are impacted but large cities and coastal towns, such as our sister authority Eastbourne Borough Council, are particularly hard hit."
Harry Rodd
