Minority of Newark and Sherwood district councillors plead with ruling Conservatives for smaller rise in council rents
A minority of councillors pleaded with ruling Conservative members to reduce a proposed rise in rent in the face of sky-rocketing living costs.
Labour Group leader Paul Peacock put forward an amendment to the planned increase of 4.1%, meaning Newark and Sherwood District Council tenants would pay an extra £165 on average each year.
Mr Peacock said the rise was unacceptable to residents who were already feeling a financial squeeze like never before.
"As we know our residents are facing an increase in energy costs, in council tax, in fuel costs and basic food items," he said.
"At the same time their incomes are not keeping up with inflation, not even nearly.
"They are facing the toughest choices every single day about how their spend their income — personal debts spiralling out of control and foodbank usage at record levels."
Mr Peacock added the report put to full council revealed the housing revenue account had saved £1.053m last year due to new efficiencies, and that £643,000 of it was still unallocated.
He said: "The report proposes this could be spent on new improvements to service delivery.
"On first consideration I was fully behind these changes and, in normal times, we should always look to improve our services. However, in my conversations with tenants, they felt now was not a good time to increase rents to improve services.
"They thought it a cynical and sceptical move and, with the cost of living crisis, have real concerns for the year ahead and another £165 [on average] to pay on rent will make things much tougher.
"We cannot control their energy or food costs, but we can control their rent costs."
Mr Peacock recommended the proposed improvements were developed but put forward for future years, and said this would not have any effect on the council's ability to build more homes.
He put forward his amendment to reduce the planned rise from £3.18 per week to 89p, an increase of around £46 a year (1.15%).
Lee Brazier seconded the amendment.
Laurence Goff said: "We don't need this increase from people who are struggling. As councillor Peacock has said, people are struggling for food, electric, gas and so forth — £3.18 [a week] is a lot for some people."
Homes and communities committee chairman Tim Wendels said the council was facing a number of challenges over the next few years, including a need to invest in the housing stock and council homes.
"The current 30-year housing revenue account business plan does not currently fund the decarbonisation agenda, the need to make our properties more energy efficient, the anticipated new decent home standard arising from the recent social housing White Paper, or the continuation of our successful new homes development programme," he said.
"Any increase in housing rents below the figure allowed, will have a massive impact on the business plan over its 30-year period. I understand that every 1% lower increase than permitted would cost our tenants around £11m over that period.
"Councillor Peacock's proposal for a 1.15% increase would therefore cost over £30m over the 30 years unless the £640,000 previously unallocated savings from bringing Newark and Sherwood Homes back in-house — which we've always promised would be used to improve the housing services we provide — unless they are utilised permanently every year to subsidise the rents ever more."
He added the proposed rise was set with tenant representatives.
Council leader David Lloyd concluded it was the council's job to plan for the future and that difficult decisions now would benefit tenants later.
Eight members voted against the 4.1% rise in rents, with 24 in favour.
