Portsmouth City Council has called for the Government to change the way it sets local authority housing finances. The council said it would be paying £500m of tenants' money to the Government over the next 30 years through the housing revenue account subsidy system (HRASS). The local authority is one of 150 councils across England which pay the Government using this scheme, and the money is then distributed to 50 other councils to improve their housing stock and services. A consortium of residents in Portsmouth is now leading a campaign for a change in the system, which is also being backed by local councillors, MPs and other local authorities. The council has estimated it would pay £4.6m this year alone to the Government for this scheme. ‘Our tenants deserve a fairer deal and should not be subject to a tax burden,' said Portsmouth City Council's head of housing management, Owen Buckwell. ‘Their money should be invested in improving their homes and the services they receive,' he added. ‘We have been unhappy with the Government's position on council housing finance for some time but, despite considerable effort, we have, so far, been unable to influence policy decisions. ‘We have had to make unpopular decisions in consultation with our tenants to increase the rent, knowing they will receive no benefit.' The council's executive member for housing, Cllr Steven Wylie, said: ‘The stealth tax does not just affect council tenants. It affects every resident in Portsmouth.' ‘We would like to retain our resources to make decisions locally and improve Portsmouth for the benefit of all. ‘The Government is preventing us from regenerating areas of Portsmouth and providing better services to those people who need them.'
