Sheffield’s Liberal Democrat councillors have temporarily blocked a proposed 6.2% rent hike for local council tenants in a bid to curb the Labour Council’s inflation-busting increase, which would see the average rent bill go up by £216 a year.

Following the provisional approval of the rent bombshell by the Council’s Labour Cabinet earlier this week, Liberal Democrats have ‘called in’ the proposal – meaning the hike cannot be implemented until given further public consideration.

Labour councillors have misled local tenants by claiming ‘their hands are tied’ by national guidelines on setting rents.^[1] However, other local authorities – such as Liberal Democrat Portsmouth Council – have previously increased rent by half the level recommended nationally.^[2]

 

Halving next year’s proposed increase would cost approximately £3.3 million. Meanwhile, next year’s Housing Revenue Account will see the cost of tenant services, which includes management, increase by £2.7 million to £53.7 million.

Cllr Penny Baker, Sheffield Liberal Democrat spokesperson for Housing, said:

“We are calling on the Labour Council to follow the lead of other local authorities, such as Lib Dem Portsmouth, and keep rent increases to a minimum to ease the cost of living for tenants.

 

“Labour bosses have attempted to claim they have no choice over this decision but that’s plainly not true. Once again they are forcing through unpopular decisions because they think they can get away with blaming it on someone else.

“With the housing revenue budget set to run at a surplus and service costs increasing to more than £50 million, there is scope to curb the increase. Yet Labour councillors want to push through an average hike of £216, which is more than three times the rate of inflation.

“Many people will simply not be able to afford to pay this unnecessary hike and that’s why we want to see this proposal looked at again.”

The decision to halt the planned hike has been backed by local Tenants’ and Residents’ Associations. Stephen Rich, Secretary of Greenhill & Bradway TARA, said:

“If the Council had been willing to accept the various grants of money offered by the Government, such as for Council Tax Benefit, they would now be under less pressure when raising rents.”