Birmingham council demands a better deal on homes funding

Birmingham City Council is up in arms after the government proposed to slash the funding for its Regional Housing Executive (RHE) by millions of pounds.

Birmingham is set to lose £14 million from April 2010, the council says; money it planned to invest in the provision of decent homes for council tenants and private sector housing. The council's allocation for private sector housing has already been reduced by £4.6 million in the current financial year.

The city council’s cabinet member for housing, Councillor John Lines, has demanded a better deal for the West Midlands following the government’s proposal. As chairman of the West Midlands’ RHE, Councillor Lines said he was dismayed by anticipated cuts of £20 million which will mean annual allocations for the West Midlands will go from £74 million in 2009/10 to £54 million for 2010/11 (a reduction of 27 per cent).

“This is a serious matter for the people of the West Midlands and several local authorities across the region, as we will all suffer as a result of these cuts,” Councillor Lines added. “We need to deliver affordable homes for our people but how can we be expected to do this with the government slashing budgets? I want local authorities across the West Midlands to join to demand the government to reconsider its position on this matter. Collectively, we represent almost 6 million people in this region that is being decimated further by the recession”.

The West Midlands’ RHE is responsible for agreeing regional housing priorities and creating a clear plan for delivery. It was established in recognition that many aspects of housing need to be planned on a regional or sub-regional basis as housing markets cross local authority boundaries.