Council calls for action over national £2.2 billion council housing budget black hole

Canterbury City Council has urged the government to act now on England’s “broken council housing finances”, including “unsustainable” levels of debt previously given to councils by government.

It has joined local authorities from across England calling for action ahead the budget this Wednesday (30 October)

A report this autumn – Securing the Future of Council Housing – backed by more than 100 councils, highlighted that our national council housing system is in crisis, with finances pushed to the brink by past national policy decisions.

The city council has signed a joint statement urging the government to help turn things round.

“The new government’s commitment to a ‘council housing revolution’ is a huge step forward for communities across our country,” says the statement.

“The Chancellor’s first Budget and spending review are a once-in-a-generation opportunity to fix England’s broken council housing finances.

“The last government tore up its 2012 council housing settlement and left local government with a £2.2 billion black hole in housing budgets.

“Our report urges the new government to turn this round, investing in urgently needed new council homes, addressing the unsustainable debt previously allocated to councils and creating a Green and Decent Homes Programme, so together we can deliver the more and better council homes and growth that communities up and down the country so desperately need.”

Cabinet member for housing, Cllr Pip Hazelton, said: “It is widely recognised that this country’s council housing is in a state of crisis. 

“Finances are absolutely dire, and we have reached a point where the levels of debt are no longer sustainable.

“Council homes are the bedrock of the structure of British housing, providing a roof over the head of those who really need it.

“We are calling on the government to step up and address the many issues we and all councils face, so that we can continue to be there supporting local families and making sure they have good quality, long term homes to live in.”

Securing the Future of Council Housing was supported by 109 councils across England, led by Southwark Council.

It highlighted that without urgent action a £2.2bn black hole in councils’ housing budgets is expected by 2028.

Published: 28 October 2024