Rents could go up by over 5%
Council house rents could rise by more than the rate of inflation.
Labour members of Wigan Council are currently considering a rise of more than 5% for the borough's 23,000 tenants, it has been revealed.
The ruling group, who will vote on the proposals this week, are blaming the Government for the proposed large hike.
They say their hands are tied to working within Whitehall-imposed guidelines unless they want to risk the Metro's rate support grant cash being cut.
Bryn Coun Gary Wilkes is now calling for a rents freeze instead.
The Metro has written to the civil servants expressing its concern.
Leader Peter Smith has also raised the issue with Wigan's MPs, pointing out that the policy "appears to be at odds" with government efforts to reduce deprivation and move people into employment.
A council spokesman said: "We've told the civil servants we think it is unreasonable and unfair to tenants to force rents up by more than the rate of inflation and to cut our housing subsidy to zero.
"This would have a big impact on our tenants, many of whom are already suffering from the credit crunch."
Coun Wilkes said that the government wants to link the rent of social housing with the value of houses and manual workers earnings – but both continue to plummet in Wigan.
He said: "The council has reserves which it can use to compensate the loss of revenue by a rent freeze.
"I will certainly be asking that they use them so that tenants are spared any rent increase next year because of the current economic situation."
Wigan and Leigh Housing chief executive Ashley Crumbley said: "I'm meeting with our tenant board members to get their views and they will be writing to the civil servants to let them know what they think.
"The tenants will be meeting again later this month and, hopefully, by then we'll have the final proposals."
He pointed out that housing finance is determined at a national level and said that the process is "widely acknowledged to be flawed and needs changing."
He said: "We are lobbying hard for a fairer system which allows decisions to be taken locally rather than by civil servants in Whitehall who have no idea of local circumstances."
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Saturday 04 February 2012
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