The policy action team on housing management, chaired by DETR director of housing Mike Gahagan and including seven of his departmental colleagues, said that the government should consider "unfreezing" council's housing management allowances.
Maintenance allowances will increase by £67m. The DETR attempted to dress up the announcement as a cash boost for councils.
But as Housing Today revealed earlier this month, taken together with management allowances, the increase will be below inflation (Housing Today, 11 November). Even on its own, the £67m extra is unlikely to keep pace with increases in tender prices.
The figures are set out in a consultation paper on the Housing Revenue Account, which in total will be £3.1 billion next year. Housing minister Nick Raynsford said: "We are combating years of under-investment in the fabric of our council stock."
The paper also confirms that council rents will increase by 4.5 per cent next year, more than double that of housing associations.
The average national guideline rent will rise to £39.28 from £37.59. But in London where more council rents are above housing association levels, rents wil rise by 3.6 per cent Ð to £49.36.
The paper also sets out subsidy arrangements for around 25 councils in deficit on their landlord functions.
Conservative housing spokesman Nigel Waterson said: "This is another example of the government saying one thing and doing another - in reality councils will be getting less money for these important tasks."
Chartered Institute of Housing director of policy John Perry said he was "very disappointed" that government had ignored the policy action team.
London Housing Unit senior policy and research officer Sylvia Carter said the figures in the paper showed the Treasury's clawback from councils would increase by £210m next year.
Source
Housing Today
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