Labour set to rocket rent levels for tenants

12.00.00am UTC (GMT +0000) Thu 6th Dec 2007

Sheffield's Labour Council would rocket rent levels by up to £500 a year for local Sheffield tenants under their preferred plan for the future of Council housing claim local Liberal Democrats. The news comes in the wake of the revelation that the council face a £900m investment gap to keep local homes decent. Labour are lobbying the Government for an option that would allow the Council to manage the housing stock. However, Lib Dems have discovered that the policy requires the Government to write off millions of pounds of debt and take the cap off rent levels.

The national cap means that local councils are unable to raise rent for tenants above an agreed level. If the cap is taken off local tenants would see huge increases in their rent in order to pay for the £900m investment gap in Sheffield. This could be up to £500 a year per tenant depending on how much the Government agrees to wipe off Sheffield's current £1 billion housing debt.

Lib Dems believe that the planned rent hike is the reason why the controlling Labour group tried to block a public report into the issue. At the recent council meeting Labour politicians gained approval to carry on their plan thanks to support from the Tory and Independent Councillors.

Lib Dems made a proposal at the meeting which would have made Labour come clean and tell local tenants the truth about the real plan, and it's impact on rent levels. However, it was voted down by Labour. Under the Lib Dem proposal local tenants, through neighbourhood commissions, would have been able to consider all options and recommend a way forward.

Cllr Bob McCann, Liberal Democrat Shadow Cabinet member for Neighbourhoods, said: -

"The real reason that the Labour Council have been trying to keep things under wraps on this issue has become clear. If Labour get their way rents would rocket by anything up to £500 a year. They should come clean and tell tenants the real truth."

"Labour have been lobbying to take the cap off rents to make their preferred option viable. That could mean large rent increases to pay for the huge £900m investment gap, as rent would be the only income source in the self-financing system."

"We want local tenants to have a real say, therefore they should be involved at every stage rather than be presented with a done deal after it's too late to progress other options."

"The tenants neighbourhood commissions should reconvene to consider all the facts and look at all the options, then spell out which way they want to go - rather than be dictated to by Labour. That's what would have happened if the Tory and Independent hadn't't supported Labour and voted it down."