Funding shortfall puts new Staffordshire homes at risk
Dozens of planned new homes to house Staffordshire's growing population are in jeopardy after council bosses revealed they were facing a £6 million funding shortfall over the next four years.
Chancellor George Osborne's announcement to cut social housing rents will have a knock-on affect to the county's councils' future building schemes, which include dozens of homes across Cannock and planned home improvements.
The warning comes from Cannock Chase Council leader George Adamson, who claims the move, which would come into play next year, will pose serious challenges to housing association and local authority revenue streams.
A total of 129 new properties had been planned across the district to help reduce waiting lists, with work already under way on nearly 90 homes at the Moss Road Estate in Chadsmoor and Green Lane in Rugeley.
There were 41 extra homes planned at a number of former garage sites throughout the district, but Cannock Chase Council bosses said plans to build these have been put on hold and may be axed altogether due to the proposed cuts.
The schemes in Chadsmoor and Rugeley will not be affected.
Under the plans to cut social housing rents, the council stands to lose out on £6.1m in funding over the next four years, a report to the council's cabinet has revealed.
Bosses have said it places future housing build schemes in jeopardy and plans to improve council homes - including upgrades such as installing double glazing - face being reviewed.
If the policy continues, the authority stands to lose out on £75.8m in funding over 30 years.
At a cabinet meeting, Cannock Chase Council leader George Adamson spoke out against the proposals.
He said: "£76m over 30 years will put in jeopardy our house building programme."
Councillor Adamson said the authority wanted to provide homes for people in need but the proposed rent reduction would put future schemes at risk.
He added: "It sounds great, a rent reduction, but it does have a knock-on effect for us building houses for people in need."
Tony McGovern, managing director at the council, said planned improvements to social housing would also be reviewed.
Cabinet chiefs, who heard the authority had been lobbying against the proposals, also authorised a review of the council's 30 year business plan to assess the implications of the proposals.
It will also allow possible options to be drawn up to mitigate the impact.
A further report will be brought back to cabinet at a later stage.
There are around 5,500 council-owned homes in Cannock and surrounding towns such as Rugeley and Hednesford.
