Rent increases have their purpose…

Thursday, 4th February 2021

• I MUST address some misconceptions in the letter from Lisa Cawley, (There’s a deficit – here are some suggestions for the council, January 28).

First, I point to the fact that Camden councillors’ remuneration is well below that of what was recommended by the independent panel in 2018 (https://www.londoncouncils.gov.uk/download/file/fid/21863) – and that includes the £10,000 increase agreed in 2018, well before the pandemic.

Second, rent increases are intended to ensure that the Housing Revenue Account (HRA) base is robust and can withstand inflationary costs. If this base is eroded, the only alternative would be to cut services to address the imbalance.

Thirdly, the reality is that council housing is now the last-resort accommodation for those who are most in need.

Two-thirds of council tenants are on housing benefit. Is the author of the letter really saying that the council should effectively take that benefit, refund it to the government, and then cut essential housing services to pay for it?

The suggested savings cannot be legally transferred to the HRA because taxpayers no longer subsidise it, that would be illegal.

The savings suggested are either in the general fund or capital expenditure which has nothing to do with revenue.

I would suggest if the government is serious about supporting council housing it would compensate the council for the consequences of the enforced 1 per cent rent reductions for four years running – Camden lost £69million income because the government imposed rent controls on council housing.

CHRIS HAYNES, NW3

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