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Press Release

Unite welcomes housing initiative which could herald 10,000 new homes a year

25 March 2010

Unite, the largest union in the country, today (Thursday, 25 March) welcomed the latest government reform of council house funding, which could see 10,000 more homes being built each year.

Unite's deputy general secretary, Jack Dromey said: 'This is very good news and shows that the government's commitment to boosting council house spending and building is not built just on words, but on practical action.'

The crux of the new self-financing system will allow councils to keep all the rent they collect from their homes and all the receipts from any sales of houses or land. The cash will not go to central government, as previously was the case, nor will it be used to subsidise other local authorities.

Jack Dromey said: 'It is expected this reform will release at least ten per cent more money for every council maintaining and managing their homes. And it could create the extra finances to build over 10,000 new council homes a year.'

'Such a building programme to assist the country's more vulnerable communities will scupper the propaganda of the boot boys of the British National Party who have been fomenting lies and distortions about council housing.'

'Labour is right to build Britain out of recession, meeting the demand for affordable homes and creating much needed jobs and apprenticeships.'

Housing Minister, John Healey set out his plans today to dismantle the current (HRA subsidy) system for funding council housing in 177 local authority areas.

The minister said: 'Above all, it will mean four million people living in 1.8 million homes will get better homes and better housing services from their council.'



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