Yet another example of the dreadfully confused state this Labour Government has got itself into by not thinking through the consequences of it actions:
The government has just announced (http://www.communities.gov.uk/news/corporate/1167420) that it is going to halve its average guideline rent increases for next year from 6.2% to 3.1%. While this is potentially good news for council tenants, Tandridge District Council is waiting to find out more about the proposal. In particular how the government is going to make the funding available to support the Council to make the changes. It is not yet clear if the Council will receive sufficient subsidy to cover actual costs.
While (apparently) it is good news that the government is reducing the impact of rent increases, we must remember that if it didn't tax TDC tenants, the council would be able to keep rents even lower. It is only giving back a small part of the 'negative subsidy' that this Council has to deal with.
