Council Calls for Action Over National £2.2 billion Council Housing Budget Black Hole

South Tyneside 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 South Tyneside Council has signed a joint statement urging Government to help turn things around.

Cllr Jim Foreman, Lead Member for Housing and Community Safety, said: "The new government's commitment to a 'council housing revolution' is a huge step forward for communities across our country.

"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."

Cllr Foreman added: "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.

"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 South Tyneside 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.