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Cllr George Beckett

COUNCIL chiefs met in Winchester to discuss a looming £2m black hole in their long-term housing accounts.

City council leader, Cllr George Beckett, described it as "most unsettling", and cabinet members heard yesterday (March 26) it was likely to surface in the 2009/10 financial year.

It has arisen because of new Government targets, and the way it shares rental income between local authorities, the cabinet heard.

Westminster wants all council housing to meet its Decent Homes standard by spring 2010.

Local authorities are upgrading their stock as a result, and Winchester is ahead of schedule.

The city council manages more than 5,000 properties, and hopes to have them all in shape by March 2009.

The problem will be maintaining them, as repair bills are likely to rise, and replacing old heating systems will be a major factor.

In a written report, officers said £9.7m would be needed in 2009/10, but only £7.7m had been identified.

The problem could arise in future years, members heard, and the council is looking at ways to cover the shortfall.

They might include selling a handful of council houses and using the proceeds to maintain the remaining stock.

Another avenue is lobbying Westminster for a better share of rental income.

The Government currently takes cash from areas where council housing might otherwise make a profit, and gives it to poorer districts.

In Winchester, where average council rents are £81 per week, Westminster takes one third of the income.

Alan Rickman, of local tenants' group, Tact, told the cabinet that it was a "bitter pill" for residents.

He added: "This is so unjust as the money is there, and could do so much more to improve services.

"Tenants pay it every week in their rent money, so why can it not be spent by Winchester City Council for its own council housing?"

Mr Rickman then argued that Westminster was hoarding some of the cash, and cabinet member for housing, Cllr Tony Coates, agreed.

"Some of it, I think, goes into the Government's back pocket," said Cllr Coates.

His Tory colleague, Cllr Beckett, added: "I think the tenants appreciate that we are facing a common enemy here."

He also touched upon the looming £2m shortfall.

"I do share Cllr Coates' concerns that the long term view is most unsettling."

Cabinet members are now due to discuss the options for raising the extra cash later this year.

10:18am Thursday 27th March 2008

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