Councils call for ‘urgent’ £644m injection to stabilise housing accounts

Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy An “unprecedented coalition” of councils has called for an emergency injection of £644 million from the Government to stabilise their housing accounts and prevent investment in new homes being delayed or cancelled. After Deputy Prime Minister Angela Rayner promised a “council housing revolution”, 100 local authorities have now warned that the financial model for council housing finances is “broken”, with a £2.2 billion “black hole” in councils’ dedicated budgets expected by 2028. A report backed by the 100 authorities concludes that unless action is taken to stabilise the system’s “foundations” soon, most council landlords will “struggle to maintain their existing homes adequately or meet the huge new demands to improve them, let alone build new homes for social rent”. The councils said: “In recognition of the severe impact the last decade of national policy choices have had on council housing budgets, we call for an emergency capital funding injection of £644 million, equal to the income lost from the 2023-25 rent cap.