The unpopular 'Tenant Tax' is to be scrapped following the pledge made in the Lib Dem manifesto, in a move which has been welcomed by the local MP, Norman Baker.
Under the previous Labour government, all council tenant rent was placed into a local housing pot from which the government would make deductions to fund subsidies for other local authorities. It was also possible for the government to claim some of this money centrally for other projects. The result of this meant that tenants of local housing authorities that were well run lost out, while the authorities that ran their housing poorly benefited with additional funds.
In conjunction with Lewes District Council, the local MP investigated this issue in 2008 and found that the district council had to return a massive £3million to central government.
Commenting Norman said: "Under the new system we will maintain that local authorities will keep their rent rather than lose it to wasteful central spending. This means that the money councils gain will be reinvested back into their area and this is great news for the Lewes district that lost out heavily under the old scheme."
The scrapping of the tenant tax is a victory for the Lib Dems who outlined their commitment to replacing the unfair current scheme in their General Election manifesto.
Norman added: "This shows a commitment by the coalition to a fairer and more local system of government and an end to wasteful and unfair central spending that was experienced under the previous Labour regime. It also further highlights the important influence that the Lib Dems are having over this administration."
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Contact Norman at:
Norman Baker,
23 East Street,
Lewes,
East Sussex,
BN7 2LJ.
Tel: (01273) 480281.
Fax: (01273) 480287.
Email: info
