By Martin Wicks

The financial crisis of local authorities is spiralling out of control. Councils are running out of money as a result of the loss of grant from central government, increasing demand for services, high inflation and the increasing cost of paying for temporary accommodation because of rising homelessness. A recent emergency meetingorganised by Eastbourne Council, the District Councils Network and the Local Government Association called for more funding from the government, an end to the freeze of Local Housing Allowance and its increase at least to the 30th percentile.

More councils are issuing Section 114 notices (a notice that they cannot balance their budget) or warning that they are in danger of having to issue one. The Mayor of Leicester announced that they will have to issue one within 18 months. Birmingham has been taken over by administrators, following other councils like Slough and Nottingham.

At the same time housing revenue accounts have insufficient funding to renew existing stock. Without a big increase in grant they cannot possibly retrofit all their stock nor build on a large scale. In a submission to the Chancellor for the Autumn Statement, the LGA called for a review of the ‘self-financing regime’which has under-funded Housing Revenue Accounts. It also called for increased funding for a council house building programme of 100,000 homes a year.

What will a Labour government do to rescue local government from collapse? What help will it provide to help councils tackle the housing crisis? As things stand, it has no plans for resolving the financial crisis that councils are facing, both in their general funds and their housing revenue accounts. Unless Labour commits to significantly increased funding then, under a Labour government, councils will face a continuation of austerity rather than an end to it.

What can we do to campaign for the increased funding needed to prevent the collapse of services and to build the council housing necessary to begin to resolve the homelessness crisis?

The Labour Campaign for Council Housing is holding a zoom meeting at 10.30 a.m. on Saturday December 2nd. The panel of speakers will include:

Sarah Doyle, Cabinet member for Housing, Liverpool Council

Greg Marshall, Deputy Leader, Broxtowe Council

Emma Taylor-Beal, Cabinet member for Housing, Worthing Council

Diarmaid Ward, Deputy Leader, Islington Council

If you would like to attend the meeting, email labourcouncilhousingcampaign@gmail.com for the Zoom link.

Martin Wicks is Secretary of the Labour Campaign for Council Housing.

Image: Nuneaton Borough Council housing. https://www.flickr.com/photos/lydiashiningbrightly/2989944672. Creator: Lydia. Licence: CC BY 2.0 DEED. Attribution 2.0 Generic.