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Let’s keep it simple, ‘It’s the robbery, stupid’

  If the government allowed councils nationally to keep their tenants’ rents, the gaping shortfall in the finances needed for management, maintenance and long term repairs to council homes, now standing at £2.25 billion, would be reduced by almost two thirds. The shortfall is almost three times the size of the Government’s widely publicised ‘Decent Homes’ programme.   

  The most authoritative Government commissioned analysis of what management and maintenance (M&M) allowances should be was carried out by the Building Research Establishment – (www.communities.gov.uk/publications/housing/estimation).  Their findings show that M&M allowances are now about £1,3 billion too low.

Brian Pordage

(Chair, Moonlight Robbery Campaign)

(www.moonlightrobbery.org.uk) is supported by

regional tenants’ organisations and TAROE.  

 

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TMO Magazine, Summer 2008

Press release: 23rd June 2008
Council Tenants Invoice Treasury
for repayment of stolen rents

WHAT
Council Tenants present Gordon Brown with a giant Invoice demanding repayment of all the rent money that council tenants have paid to support the treasury between 1997 and 2005

WHEN
Wednesday 25th June at 1.30 p.m.

WHERE
At Abingdon Green opposite the Houses of Parliament

PHOTO OPPORTUNITY
Tenants, including Winchester Tenant, Alan Rickman (1)) will present the invoice to Gordon Brown (or a Gordon Brown look alike) They will be accompanied by supportive MPs.

On Wednesday 25th June council tenants will take a giant invoice to Parliament, demanding repayment of £17,340 million of council tenants rent monies which government has used to pay for items to subsidise the treasury and general tax payer.

Moonlight Robbery campaigners, say rents council tenants should be used, as most assume they are, exclusively for the management, maintenance and repairs to their homes, yet £1,400 million of it this year and £17,340 between 1997 and 2005 of their rents has not been used for these purposes. At the same time, there is a shortfall of £2,250, according to governments own figures in the funding required to properly manage, maintain and repair their homes.

Since Labour came to power £2,850 million (2) of council tenants’ rents has found its way directly into treasury coffers. But this is the tip of the iceberg as Council tenants’ rents are also used to repay debt on capital investment in council housing. This is patently unfair, since when this capital asset is sold under the right to buy, again the majority of the money goes into the treasury.

Two government reports show the level of shortfall in funding for management, maintenance and repairs to tenants homes. The first is from analysis the Building Research Establishment carried out in 2003. (3) If the figures in this analysis are updated there is a £1,300 million shortfall in allowances given to councils to manage and maintain council homes.

The other report (4) produced in April 2008 shows an additional shortfall in funding for major repairs to tenants homes of £950 million a year.

Meric Apak, (Chair of Camden Federation of Tenants and Residents Associations) said “Government consistently refers to council housing as subsidised. Nothing could be further from the truth. We estimate that each council tenanted household is subsidising the general tax payer to the tune of around £13 a week, which the majority of tenants know nothing about. Like the 10p tax rate this government is taxing poor people more and more. Our rents should be used to properly maintain and repair out homes. And we want back what has been misappropriated from our rent payments since 1997.”

Notes:
1) Alan Rickman has successfully filed a case against the government for misappropriation of rents in the European court of human rights

2) See answer to Parliamentary Question 131845 from Yvette Cooper to Anne Snelgrove 30th April 2007)

3) See “Estimation of the need to spend on maintenance and management in the Local Authority housing stock” by BRE Construction Division published by ODPM June 2003

4) See “Self-financing of local authority housing services: summary of findings of a modelling exercise” published by CLG March 2008.