International Union of Tenants

The Tenants' Charter

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Social Housing has changed. This is because the way Rossendale Borough Council ran your council home was financially unsustainable.

The lack of long term planning since the 1940's has led to lack of investment. Continual policy changes every time the council changed hands in the past also led to wastage in fiscal policy, continued lack of direction, lack of policies and lack of staff training at all levels has led to the astronomical deficits our council is left with today.

The government has also capped all  local councils from borrowing money to spend irresponsibly on major projects and big schemes that do not work. The only way councils can now raise funding is by transferring the housing stock into the hands of other organisations who have long term planning in place, appropriately trained staff and a long term (10 year+) business plan.

This gives stability to the housing stock, improving the neighbourhoods and environment for years to come. This also allows tenants to live with the peace of mind they are entitled too, in houses where people want to live.

The financial context

Local councils under guidance from the ODPM (office of deputy prime minister) must now:

• Produce business plans
• Introduce resource based accounting (zero based budgeting)
• Continue to balance the Housing Revenue Account
• Review policies about capital investment
• Bring homes up to decent homes standard by 2010
• Achieve rent convergence by 2012

 

Rents - Affordability

• Concept of target rents
• 70% of rent linked to local earnings
• Eligibility of housing benefit
• Move to target over 10 years
• Harmonise local authority and social landlord rent 10 years
• Local Authorities able to vary rents only by 5% of target
• Limit annual increase + or - 0.5% + or - up to £2

How do councils pay for housing services & investment

• "Ring fenced" housing revenue account (HRA)
• Approved government borrowing (credit approvals, prudential borrowing)
• Limited grant funding from various sources
• Capital receipts can be used for other council purposes

 

Housing Revenue Account

    Expenditure                              

• Repairs
• Housing management staff / offices etc
• Capital charges and contributions
• Subsidies contributed to government

 

Income

• Rents
• Service charges
• Subsidies (major repair allowances, positive subsidy)