Bristol City Council Labour leaders freeze council rent against own backbenchers’ demands

Bristol City Council Labour leaders have rejected calls from their own backbenchers to increase council home rents – and accused them of failing to understand the benefits system.

Bristol City Council cabinet members approved plans to freeze the amount paid by nearly 27,000 tenants on Wednesday, February 3, saying the pandemic had already hit the poorest the hardest.

But some of the party’s own councillors and candidates at the forthcoming local elections implored them to make a U-turn, calling a rise a “necessary evil”.

They said the decision would not only reduce the money available for maintenance and repairs but the amount the authority could borrow, meaning a cut in the number of new homes that could be built and energy efficiency improvements to existing properties.

Critics of the rent freeze also insist any increase would be covered for many by housing benefit or Universal Credit.

Aileen McLoughlin, who is standing for Labour in Windmill Hill ward at the polls in May, told an extraordinary meeting of cabinet: “I am worried that the long-term impact will actually be damaging to those in most need.

“The impact of a rent increase is compounded, it doesn’t just affect this year, and the loss of borrowing capacity will be in the tens of millions. Under last year’s rules this could have cost the delivery of up to 1,000 homes.

“We need to maximise funding the Housing Revenue Account (HRA) to meet commitments to housing, repairing, improvements, retro-fitting and carbon reduction.

“We need to take advantage of the cumulative effect over 30 years of a small increase this year. We lose it forever, not just for one year. A small rent increase is a necessary evil to achieve our ambitious aims for housing.”

Councillor Nicola Bowden-Jones has said she will vote against the budget if it includes a rent freeze when it comes to the final decision at full council later this month, while fellow Labour councillor Jo Sergeant is also critical of the move.

Council flats in St Jude’s. Photo: Martin Booth

Green group leader councillor Eleanor Combley told the meeting: “I know a rent rise is a difficult headline to spin, but doing stuff that makes easy headlines should not be our guiding light. We should try to do the right thing.”

But deputy mayor councillor Craig Cheney said: “I slightly resent the idea this is a headline-grabbing exercise.

“As someone who grew up in a three-bedroom council house of 13 people, not only do I know what it’s like to bear the brunt of a lack of council housing, I also understand what it’s like to have someone sap a couple of quid out of your rent and your earnings.

“As this year has been difficult for so many and there is much evidence the pandemic has hit those with the least hardest, it does not seem right to ask some of Bristol’s poorest citizens to pay more this year.”

He said many tenants had not received the repairs or improvements expected this year, partly because of Covid-19, so the HRA budget was “significantly underspent”, which meant a rent increase would be hard to justify as there was more money than expected.

A report to members said a 30-year plan would be produced over the next year outlining the authority’s spending, borrowing and investment in housing.

Cheney said: “A decision not to increase rents this year will allow us to pause and make sure our priorities are clear for the next 30 years and any future rent rises for our tenants are clearly linked to the plan and, importantly, to better service from us as a landlord.”

Cheney said reserves would be used to make up the £1.8m the council would miss out on from higher rents but that the reserves remained “very healthy” at £82.2m.

“Freezing rents for one year because of collective economic hardship will not threaten our commitment to new social housing in Bristol,” he added.

The rent of council properties was discussed at an extraordinary full council on February 3. Image: Bristol City Council/Zoom

Cabinet member with responsibility for landlord and tenant services, councillor Helen Godwin, said: “A decision not to raise rents and therefore not to increase the size of the HRA is obviously not one we would take lightly given the extreme pressure our housing system is under.

“Too many people are waiting to be housed and building more housing is clearly our focus as a city. But I still believe freezing rents is the right thing to do this year.

“We’ve got families that are unable to provide food for their children or keep their houses warm, and increasing rents by any amount would add further pressure and stress.”

She said those who argued a rise didn’t matter because it would be covered by benefits failed to understand it would reduce the amount of money many tenants on Universal Credit have available to spend or that a “significant number” were not on benefits anyway or had retired.

“Freezing rents this year will not mean repairs and maintenance will not be carried out,” Godwin said.

Cabinet member councillor Helen Holland said: “I find some of the statements quite baffling that people are quite happy to see additional costs fall on some of our poorest residents.”

Deputy mayor councillor Asher Craig said: “I’ve got friends who live in council housing and they are up against it. Any whisper of ‘we’re going to raise your rent’ will send them over the edge.

“We’re making the right decision for the vast majority of people and it does not in any way compromise our position going forward in terms of raising money within the HRA budget.”

Last year, mayor Marvin Rees also proposed keeping council rent the same but a Labour amendment to increase it by 2.7 per cent was approved at full council.

Amanda Cameron is a local democracy reporter for Bristol.

Main photo: Martin Booth

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