Thursday, 02 September 2010

MPs demand support for council-led building

MPs have called for major action in the pending review of council housing finance to allow a mass programme of local authority house building.

The House of Commons council housing group, chaired by Labour MP for Great Grimsby Austin Mitchell, said the £100 million allocated for council building in the Budget was a significant but very minor step towards meeting the demand for investment.

In a new report, Time for Council Housing, it calls for a substantial increase in the grant funding available to councils.

It also calls for government to change the way public sector borrowing is calculated, and to devise a ‘fair’ and ‘sustainable’ system for funding existing council stock.

In a statement the group said: ‘The pending review of council housing finance must now resolve the problem of fair funding to manage and maintain all council housing and remove the historic debt burden, if new and existing council homes are to be financially viable.’

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