Council building fund 'not enough'
The government has announced £100 million of funding for local authorities to build new council housing at higher energy efficiency standards.
The cash injection consists of £50 million of extra grant funding for the Homes and Communities Agency, and £50 million of loans available through prudential borrowing. It is part of a package worth around £1 billion announced in the Budget.
Councils will be able to bid for the funds through the HCA.
A spokesperson for the Local Government Association welcomed the boost but expressed disappointment that council housing gained only £100 million.
‘Whilst any new money to build homes to a high standard is good news, what this is going to mean in practice is only about 2,000 homes in total,’ he said.
‘It is a step in the right direction but it has to be viewed in context.’
Austin Mitchell MP, chair of the Council Housing Group of MPs, said the funding was welcome but was ‘not enough’.
‘Ministers can today agree to end the robbery of council tenants’ rents, ring fence council housing funding, and provide development grants to kick start a new generation of first class council housing,’ he said.
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