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Local government has hit out at Whitehall for raising council rents and restricting council tax rises at the same time. One council has branded the rises as ‘scandalous', and called on housing minister, Margaret Beckett, to reconsider. Last week, local government minister, John Healey, warned councils he would cap council tax rises which were not substantially below 5% (see The MJ, 22 January). But council rent rises – which are set by central government – have gone up by 6%. Rises are almost double the current rate of inflation, which was unveiled at 3.1% last week, and inflation is set to plummet further throughout the year. Councils are striving to keep the council tax rises as low as possible – with many freezing rises due to the economic downturn – but the rent rises will be a blow for residents. The increases from the Government are ‘guideline' amounts, and some councils are choosing not to pass them on to tenants. However, the Government is reducing rent subsidies, assuming the rises will go ahead. Councils will, therefore, have to find the extra cash from other resources. Westminster City Council has written to the Government on the issue, which will mean a £300 rise for its tenants. Cabinet member for housing, Philippa Roe, said: ‘This increase set by the Government is scandalous during what is a difficult time financially for many people.' A spokesman for the CLG said: ‘Our proposals for council rent levels will continue to protect local authority tenants so that increases will amount to no more than an estimated average of £3.95 a week'.

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FINANCE

Council rent rise of 6% branded 'scandalous'

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