Luton Borough Council

28/10/2024 - Luton Council calls for action over national £2.2 billion council housing budget black hole

Luton Council today urges government to act now on England's "broken council housing finances”, including “unsustainable” levels of debt previously given to councils by government.

It joins local authorities from across England calling for action ahead of next week’s Autumn Budget.

A report this autumn – Securing the Future of Council Housing – backed by more than 100 councils, highlighted that our national council housing system is in crisis, with finances pushed to the brink by past national policy decisions.

Today Luton Council has signed a joint statement urging Government to help turn things round.

“The new government’s commitment to a ‘council housing revolution’ is a huge step forward for communities across our country,” says the statement.

“The Chancellor’s first Budget and spending review are a once-in-a- generation opportunity to fix England’s broken council housing finances.

“The last government tore up its 2012 council housing settlement and left local government with a £2.2 billion black hole in housing budgets.

“Our report urges the new government to turn this round, investing in urgently needed new council homes, addressing the unsustainable debt previously allocated to councils and creating a Green and Decent Homes Programme, so together we can deliver the more and better council homes and growth that communities up and down the country so desperately need.”

Councillor Hazel Simmons, Leader of Luton Council, said: “Council homes are so much more than bricks and mortar – they are a cornerstone of a better life.

“But our country’s council housing is in crisis – policy decisions over the past decade have pushed finances to the brink and undermined the sustainability of the system.

“In Luton we’ve lost 198 homes from our social housing stock since 2021, which highlights the urgent need to reform unsustainable Right to Buy policies. We are currently on site building 52 new, affordable, council homes, and are seeking to increase affordable housing delivery including through partnerships with local developers and housing associations.”

“We’re calling for government to take this once-in-a-generation chance to fix England’s broken council housing finances, address unsustainable debt, and help us to make sure future generations in Luton have the council homes they need.”

Securing the Future of Council Housing was supported by 109 councils across England, led by Southwark Council.

It highlighted that without urgent action a £2.2bn black hole in councils’ housing budgets is expected by 2028.