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Tenants are continuing to subsidise the taxpayer
• THE unfairness of government financial policy continues with tenants’ monies not funding landlord activity.
Council housing will only be sustained if Management and Maintenance Allowances (M&M) reflect true need.
Council tenants have historically subsidised the taxpayer by not having all our rent monies being used for our housing but being used by government for other purposes. Between 1994 and 2003 this amounted to £3.94 billion.
Even the receipts from Right to Buy are siphoned off as only 25 per cent is returned to councils.
As this is not ring-fenced to council housing councils have not, and do not, reinvest this money in housing.
This is despite the fact that the asset sold off was paid for by tenants.
Looked at in a slightly different way the underfunding by government in M&M allowances and other shortfalls amounts to a tax on tenants of an estimated £12 per week for each tenant.
Recent rises in target rents to allow council rents to rise to housing association levels only serves to increase this hidden tax because the money does not come back to us to fund M&M.
This is a major reason why Camden particularly is unable to obtain the “Decent Homes Standard” even by the newly changed target date of 2017 instead of 2011.
The campaign to right this tax on tenants must continue, both by tenants and by our councillors and our parliamentary representatives.
Brian Pordage
Lissenden Gardens, NW5
London Tenants Federation
with evidence produced by David Gibson
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