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Hinckley and Bosworth Liberal Democrats welcome scrapping of the "Tenant Tax"

October 12, 2010 10:48 AM

Liberal Democrats in Hinckley and Bosworth have welcomed the government's decision to scrap the "Tenant Tax"

Local Liberal Democrats have long campaigned for councils to be allowed to keep all council house rents and sales receipts they collect to reinvest in local council housing. Now Liberal Democrats in government are going to deliver on this.

Under the previous system, all council tenants rent was paid into a local housing pot, from which the government was allowed to make deductions to fund subsidies for other local authorities. The government also retained some of the money centrally. Here in Hinckley and Bosworth thousands of pounds of tenants rent was taken by the government to be spent in different parts of the country.

The new government proposals will mean councils can retain all of the money from rents and sales receipts to invest in the repair, maintenance and construction of social housing in their area.

Cllr Stuart Bray, Liberal Democrat leader of Hinckley and Bosworth council is delighted by the news "Hinckley and Bosworth council have had to hand over huge amounts of tenants money every year, which was outrageous. Now 'Labours Tenants Tax' is finally scrapped this can only be good news for our local tenants, who have had to endure years of neglect under the previous Government.

"This decision means that rent money from Hinckley and Bosworth tenants' can be spent on maintaining and improving Hinckley and Bosworth's council houses."

Commenting, Liberal Democrat Communities and Local Government Minister Andrew Stunell MP said "I'm delighted that we are able to announce the end of the unpopular "Tenant Tax". Council tenants are invariably on low incomes, and should not be subjected to an additional tax to fund social housing improvements in other parts of the country. Our proposals will allow local authorities to invest in the repair and maintenance of the social housing stock in their area, and even invest in more social houses if they wish."