Don't miss a story sign up to Exmouth Journal's FREE daily newsletter CLICK HERE

£84m debt will ‘benefit’ district council

09:41 20 February 2012

New homes

New homes

Archant

District housing bosses are being ‘forced’ by Whitehall to borrow £85million over the next 30 years a Budleigh councillor has said.

Former mayor Tom Wright was briefing colleagues at last week’s town council meeting about how the overhaul of the Housing Revenue Account, the Government’s system of funding council housing, would affect district coffers.

But, despite the massive sum, he said that East Devon District Council would ultimately be better off - and end up with an extra £2million a year to spend on council housing.

Currently, councils pay all the rents and receipts from sales of their council housing stock into a pot of money which is then redistributed to ‘poorer’ councils in Devon.

This amounts to around £6million a year, totalling £180million over 30 years.

But it has been argued that this system puts financially sound councils, like East Devon, at a disadvantage.

So the Labour Government decided that councils should retain all their rent income and receipts from right-to-buy sales and rent.

And, instead of paying into a pot every year, they can borrow £84,782,000 off the Government in one go, and pay it off over 30 years.

This effectively slashes the cost in half and after interest payments are deducted Councillor Wright said it left EDDC with around £2m extra to spend on social housing.

He said: “From March 28, East Devon District Council will be forced to borrow from the Government the sum of just over £84m.

“We are being forced to borrow it. It is to go into the housing budget.

“Up until now, every year we have (the district council) been required to pay around £6million into a central government fund which is then dispersed to other less well-off districts.

“As a result of taking out this loan, we will not have to make any other dispersments.

“The interest charges will be three to four million, so we will have two million more per year to go into our pockets plus a facility to use that can be invested into social housing.

“East Devon District Council is a well run authority which is financially responsible.

“Over 30 years it should work out as a benefit.”

0 comments

Other News Stories

06:30
Flooding at Mytholmroyd in Yorkshire - one of the communities which will benefit from money raised in Exmouth and Budleigh by Rotary Club volunteers.

Rotary Club fundraisers from Exmouth have revealed that a total of £4,000 has been sent to help flood victims in the north of England, thanks to generous local residents.

Read more
10:00
Topsham primary school children learning about fire safety awareness with Liz Porter and Maxine Tyson of Devon and Somerset fire and rescue. Ref ext 03-16TI 9602. Picture: Terry Ife

Schoolchildren in Topsham were given life-saving information about what they should do in the event of a fire.

Read more
Yesterday, 16:30
Fundraisers at the Thomson Reuters Digita Wii Olympics.

An Exmouth business is set to dig deep to support a children’s hospice charity at the Rainbow Run in June.

Read more
Yesterday, 15:00
The Repair Cafe at Exmouth Methodist Church. Mike Hoden inspects a sewing machine motor. Ref exe 4882-49-15AW. Picture: Alex Walton

Have you got something that needs fixing? The Exmouth Repair Café is back in town tomorrow (Saturday, February 6) at the Methodist Church in Tower Street from 10am to 1pm.

Read more
Yesterday, 13:32

59-year-old pleads not guilty over crash which claimed the lives of women from Exmouth and Newton Poppleford

Read more
Yesterday, 12:30

A professional musician has been jailed for attacking his brother during a drunken argument at a flat in Exmouth.

Read more
Yesterday, 12:30
Dinan Way junction. Ref exe 05-16AW 8319. Picture: Alex Walton

Lympstone will not be bullied by Devon County Council over plans for the completion of Dinan Way, said parish and district councillor Rob Longhurst at this week’s parish meeting.

Read more
Yesterday, 12:07
Communities in East Devon took part in a 'bite back' campaign against loan sharks

Communities in Sidmouth, Exmouth, Honiton, Axminster and Ottery St Mary targeted in bid to raise awareness

Read more
Yesterday, 11:29
Devon County Council's County Hall in Exeter

A charity which campaigns on fostering has cited Devon County Council as an example of good practice for its work with children in care.

Read more
Yesterday, 06:30
Karien Edgcumbe and Carin Harris from Exmouth Hospiscare shop promoting this summer's Twilight Walk. Ref exe 05-16AW 8025. Picture: Alex Walton

A glitter bomb attack of sparkly pink bows was the work of Hospiscare, as the charity launched its annual Twilight Walk.

Read more

Local Weather

Rain

Rain

max temp: 11°C

min temp: 3°C

Most Read News

Great British Life

Great British Life

Useful Links

Advertise in the Paper
Submit a Story
Subscriptions Order
Competitions
Photo Orders
Family notices
iwitness24
Google Plus
Facebook
Twitter
Reader Travel

Family Notices 24

Read Online

Image
Read the Exmouth Journal e-edition E-edition

Local business directory

Exmouth's trusted business finder

HOT JOBS

Show Job Lists


Find planning applications