10:00am Monday 5th September 2011 in News By David Wiles
A POLITICAL row has erupted over a tenants’ newsletter to be distributed ahead of a ballot to decide whether to offload Swindon Council’s housing stock.
Swindon Council is to ballot tenants on an option to transfer all the properties to a new not-for-profit housing association in order to dodge a £145m bill from the Government.
The Conservative administration says this bill would prevent it from keeping the 10,500 homes at minimum standards of decency. However, the Labour group opposes the transfer, claiming it would reduce democratic accountability.
The council cannot tell tenants how to vote, but Labour claims that Tories are “misusing council power” through allegedly promoting the transfer in a special edition of Housing Matters, which focuses on the ballot.
The newsletter, which will be sent out today, states on the front page: “The alternative – and the council’s preferred option – is to create a new, independent not-for-profit, local housing association to own and manage the council’s homes.”
On page two it states that the need for significant future investment in Swindon’s sheltered accommodation is “another key reason why the council wants a new housing association with the money and capacity to take on this challenge.”
Coun Grant said: “Tenants should be very angry with the way the council has behaved in promoting tenants moving to a housing association.
“This subtle promotion by the council for moving tenants to a housing association completely undermines their role as offering unbiased information to tenants in order to let them choose.
“Plus the council has absolutely no authorisation to do this. Back at the last full council meeting in July, council agreed to move to a ballot but we never agreed to promote tenants moving to a housing association. It’s a complete misuse of council power that they are doing this.
“Swindon Council’s Conserv-ative administration needs to make up their minds. Are they going to ensure the council plays a neutral role and make sure tenants get unbiased information?
“Or are they going to promote tenants moving to a housing association, in which case they need to authorise this through a council resolution? However, they can’t do both”
In a statement, Coun Russell Holland, the cabinet member for One Swindon, communities and housing, said: “There is no foundation to these claims.
“The council’s position is that there are clear benefits for tenants if they choose to transfer but it is up to tenants to decide.
“My priority is to ensure that tenants have the information they need to make an informed choice. The Housing Matters article was approved by an independent tenants’ adviser.”
Swindon Council is negotiating with the government to move the date of the ballot from as early as November to February to allow a longer consultation period.
Comments(124)
Robfm
says...
10:16am Mon 5 Sep 11
prole
says...
10:19am Mon 5 Sep 11
A.Baron-Cohen wrote:The £145M will only be serviced out of the social housing rent account and not through council tax. This account is ring fenced.
"Labour group opposes the transfer, claiming it would reduce democratic accountability" like the wifi fiasco.......If Labour wants the decision to be Democratic, why don't we have a city wide referendum on the issue, since we are all going to have to pay for this 145million bill through our council tax.
Councillors left and right use Democracy as a political tool...but when it comes to the crunch none are ready for it!
prole
says...
10:22am Mon 5 Sep 11
I 2 Could B
says...
10:33am Mon 5 Sep 11
The Tory administration focus heavily on the £158m bill from the Government. What they do not say is that the SBC council house account currently pays a subsidy to central government of £9.5M per year.
If the council house stock remains with the council after the ballot, the £158M will need to be paid to central government but the £9.5M subsidy
payment from SBC will cease.
A.Baron-Cohen
says...
10:35am Mon 5 Sep 11
prole wrote:Putting the issue of democratic accountability aside, I find it hard to believe that this council is able to manage a multi million pounds housing stock considering the wifi fiasco and the Regeneration farce.
A.Baron-Cohen wrote:The £145M will only be serviced out of the social housing rent account and not through council tax. This account is ring fenced.
"Labour group opposes the transfer, claiming it would reduce democratic accountability" like the wifi fiasco.......If Labour wants the decision to be Democratic, why don't we have a city wide referendum on the issue, since we are all going to have to pay for this 145million bill through our council tax.
Councillors left and right use Democracy as a political tool...but when it comes to the crunch none are ready for it!
prole
says...
10:37am Mon 5 Sep 11
I 2 Could B wrote:You need to factor in rent increases also. That would bring the timescale down considerably.
The Tory administration focus heavily on the £158m bill from the Government. What they do not say is that the SBC council house account currently pays a subsidy to central government of £9.5M per year.
If the council house stock remains with the council after the ballot, the £158M will need to be paid to central government but the £9.5M subsidy
payment from SBC will cease.
You keep posting this. If I've read it correctly, what you're saying is that if the £158m is paid, SBC save taxpayers £9.5m per annum.
Assuming zero interest rates apply over the entire period (which they wouldn't, but hey), that means it would take the best part of 17 years for SBC to be financial 'better' off. Doesn't sound like the 'attractive' proposition you're attempting to sell it as.
prole
says...
10:40am Mon 5 Sep 11
A.Baron-Cohen wrote:The reason we pay the £9.5m is because Swindon BC, under Labour and Tory's have run an excellent account historically. More down to the officers these days though I would have to say.
prole wrote:Putting the issue of democratic accountability aside, I find it hard to believe that this council is able to manage a multi million pounds housing stock considering the wifi fiasco and the Regeneration farce.
A.Baron-Cohen wrote:The £145M will only be serviced out of the social housing rent account and not through council tax. This account is ring fenced.
"Labour group opposes the transfer, claiming it would reduce democratic accountability" like the wifi fiasco.......If Labour wants the decision to be Democratic, why don't we have a city wide referendum on the issue, since we are all going to have to pay for this 145million bill through our council tax.
Councillors left and right use Democracy as a political tool...but when it comes to the crunch none are ready for it!
This Council owes vast amount of properties in Town and so far this has proved to be more of a liability than an asset, so in view of the council poor past performance, I would support private management instead.
A.Baron-Cohen
says...
10:57am Mon 5 Sep 11
prole wrote:if Swindon has "run an excellent account historically" as you say, why is it that the list for housing keeps on growing, 1000s of people are denied the chance to have a place to live despite their best efforts and intentions.
A.Baron-Cohen wrote:The reason we pay the £9.5m is because Swindon BC, under Labour and Tory's have run an excellent account historically. More down to the officers these days though I would have to say.
prole wrote:Putting the issue of democratic accountability aside, I find it hard to believe that this council is able to manage a multi million pounds housing stock considering the wifi fiasco and the Regeneration farce.
A.Baron-Cohen wrote:The £145M will only be serviced out of the social housing rent account and not through council tax. This account is ring fenced.
"Labour group opposes the transfer, claiming it would reduce democratic accountability" like the wifi fiasco.......If Labour wants the decision to be Democratic, why don't we have a city wide referendum on the issue, since we are all going to have to pay for this 145million bill through our council tax.
Councillors left and right use Democracy as a political tool...but when it comes to the crunch none are ready for it!
This Council owes vast amount of properties in Town and so far this has proved to be more of a liability than an asset, so in view of the council poor past performance, I would support private management instead.
A.Baron-Cohen
says...
10:57am Mon 5 Sep 11
prole wrote:if Swindon has "run an excellent account historically" as you say, why is it that the list for housing keeps on growing, 1000s of people are denied the chance to have a place to live despite their best efforts and intentions.
A.Baron-Cohen wrote:The reason we pay the £9.5m is because Swindon BC, under Labour and Tory's have run an excellent account historically. More down to the officers these days though I would have to say.
prole wrote:Putting the issue of democratic accountability aside, I find it hard to believe that this council is able to manage a multi million pounds housing stock considering the wifi fiasco and the Regeneration farce.
A.Baron-Cohen wrote:The £145M will only be serviced out of the social housing rent account and not through council tax. This account is ring fenced.
"Labour group opposes the transfer, claiming it would reduce democratic accountability" like the wifi fiasco.......If Labour wants the decision to be Democratic, why don't we have a city wide referendum on the issue, since we are all going to have to pay for this 145million bill through our council tax.
Councillors left and right use Democracy as a political tool...but when it comes to the crunch none are ready for it!
This Council owes vast amount of properties in Town and so far this has proved to be more of a liability than an asset, so in view of the council poor past performance, I would support private management instead.
itsamess
says...
11:08am Mon 5 Sep 11
I 2 Could B
says...
12:08pm Mon 5 Sep 11
if Swindon has "run an excellent account historically" as you say, why is it that the list for housing keeps on growing, 1000s of people are denied the chance to have a place to live despite their best efforts and intentions.
A.Baron-Cohen
says...
12:41pm Mon 5 Sep 11
I 2 Could B wrote:I am certainly not a communist and social housing is certainly not a communist idea.....it may come as a surprise, but victorian employers started building houses for their workers and families....and this is particulary true in Swindon.
if Swindon has "run an excellent account historically" as you say, why is it that the list for housing keeps on growing, 1000s of people are denied the chance to have a place to live despite their best efforts and intentions.
The UK, although efforts were made to take it down that route, is not a communist country. We don't simply build thousands of free houses for people who don't fancy paying their way (well, we do, just not as many as people like you would like).
We already have one of the most spectacularly generous welfare state and benefit systems in the world, hence so many people find emigrating to the country so appealling, but I'm afraid it's not possible for taxpayers to simply pay for houses to be built for everyone who is unable to afford them.
As ever, your economics don't add up. Yes, if we gave everyone a free house they'd have more disposable income, but if each house costs £100k to build and the people living in them earn £15k per year, it'd take about 20 years before any of it made the remotest of financial sense.
Also, the devaluation of the existing property market would devastate our already fragile economy to the point of oblivion... and would only get worse as those families who rely on their property for their pension would again need free housing and the whole cycle would begin again.
Your lot failed, economically, by trying to persue an ideology of giving everyone everything they want for free... but forgetting that somebody, somwhere actually has to pay for it all.
I 2 Could B
says...
12:51pm Mon 5 Sep 11
A.Baron-Cohen
says...
1:09pm Mon 5 Sep 11
I 2 Could B wrote:I can only agree with you.....
Yes, absolutely. Employers would have very good reason to do so in those days - and it's why they pay salaries to enable people to rent or buy property these days. The better the job you manage to secure, the more money you'll be paid and the better housing you can afford. It's all very simple.
What didn't happen 150 years ago is everyone having their salary stolen from them in order to build free, or cheap, housing for 2m people that didn't work at all or for 400,000 new immigrants per year.
Spot the difference?
Emma Faramarzi
says...
1:55pm Mon 5 Sep 11
prole
says...
2:22pm Mon 5 Sep 11
Emma Faramarzi wrote:More about saving money we do not have. I believe Labour objected to the expense of £1M + for the ballot without research. Two ballots have been abandoned in the last 8 years because initial feedback has shown that it would have been voted down with a large majority.
Every single Labour Councillor voted against giving the housing tenants the right to vote on this decision. My question to the Swindon Labour party is "why did you attempt to deny the council tenants the right to choose?"
Even Angrier Monkey
says...
3:57pm Mon 5 Sep 11
I 2 Could B
says...
4:17pm Mon 5 Sep 11
Emma Faramarzi wrote:Labour's aim, as with any socialist organisation, is to ultimately remove all choice and democracy from the people because they believe the State/they know best.
Every single Labour Councillor voted against giving the housing tenants the right to vote on this decision. My question to the Swindon Labour party is "why did you attempt to deny the council tenants the right to choose?"
I 2 Could B
says...
4:28pm Mon 5 Sep 11
prole
says...
4:56pm Mon 5 Sep 11
Even Angrier Monkey wrote:I do not think either option is a burden on the council tax account. I believe that if the vote is to stay with the Council then the £1M expense will come out of the Council House Rent Account. If the vote is to opt out then it will be covered by the housing association purchase.
I'm for whichever option will cost me least in subsidy, sorry I mean council tax
Punctured bicycle on a hillside
says...
5:07pm Mon 5 Sep 11
I 2 Could B
says...
5:17pm Mon 5 Sep 11
Robfm
says...
5:31pm Mon 5 Sep 11
Punctured bicycle on a hillside
says...
5:34pm Mon 5 Sep 11
I Too
says...
6:16pm Mon 5 Sep 11
prole
says...
6:42pm Mon 5 Sep 11
Robfm wrote:Very poignant comment:
It seems to me some are missing the point here. This housing stock is worth about £1 billion. If as Prole says we pay down the debt even over 17 years, SBC are then have a growing asset which could be used to finance the building of more council houses.
In fact if SBC borrowed the entire amount against the housing stock they could start building much earlier, or is it the case that SBC, looking at their projections for 2011/12 have a zero credit rating.
It just does not stack up to me to virtually give away these houses for £66 million, this makes the wifi stupidity look almost acceptable.
prole
says...
6:43pm Mon 5 Sep 11
Robfm
says...
7:05pm Mon 5 Sep 11
Russell Holland
says...
9:25pm Mon 5 Sep 11
prole
says...
9:43pm Mon 5 Sep 11
Russell Holland wrote:Russell Holland says"For Swindon even though we get to keep the £9.5million servicing the debt will mean there is a shortfall for £72million over 10 years."
Few points.
First, Council housing is paid for by tenants rents. This money is put into the Housing Revenue Account. That account is ring fenced. Therefore the rents can only be used for spending on housing. Council tax cannot be used to subsidise Council housing.
Second, put really simply the Government would calculate how much rent should be paid and how much was needed for repairs etc. by formula. If you had more rent than your deemed expenditure then you had to pay the money to the Government. This is the so called negative subsidy or tenant's tax. Under this scheme last year tenants paid £9.5million to the Central Government. This scheme is called the subsidy system.
Third, starting under Labour and continuing under the Coalition a decision was made to scrap the subsidy system. But because some Councils would lose out a formula is calculated to enable a similar degree of investment that would have been provided under the subsidy system. So Councils are allocated a debt - for Swindon this is £145million.
Fourth, for some Councils the cost of paying the debt is less than the subsidy so they win. For Swindon even though we get to keep the £9.5million servicing the debt will mean there is a shortfall for £72million over 10 years. The £145million will be paid for from tenant's rents, in just the same way the subsidy is paid for by tenants' rents.
Fifth - it is true that the Housing Association would borrow money to invest in the stock - this amount will exceed the amount which the Council could borrow. This will be paid for by tenant's rents.
So the subsidy or the £145million or the moneys borrowed by the Housing Association will all be paid for by tenants' rents. The difference is that with the Housing Association everything that is borrowed will be invested in the housing stock in Swindon.
The Council's position is that there are benefits to a tranfer but it is up to tenants to decide by a ballot. The Council did not have to go to ballot. The Council could have just accepted the £145million debt without balloting tenants.
Labour voted against going to ballot.
Labour are now actively encouraging tenants to vote no.
I say let the tenants' choose. I am happy to provide all the information they can to help them make a decision.
This is not about Labour or Conservative or Jim Grant or me or the Coalition Government. It is about tenants.
Russell Holland
says...
9:56pm Mon 5 Sep 11
Russell Holland
says...
9:57pm Mon 5 Sep 11
itsamess
says...
10:09pm Mon 5 Sep 11
Russell Holland
says...
10:17pm Mon 5 Sep 11
prole
says...
10:41pm Mon 5 Sep 11
Russell Holland
says...
10:54pm Mon 5 Sep 11
prole
says...
10:57pm Mon 5 Sep 11
itsamess
says...
10:59pm Mon 5 Sep 11
Russell Holland
says...
11:01pm Mon 5 Sep 11
prole
says...
11:09pm Mon 5 Sep 11
Russell Holland
says...
11:11pm Mon 5 Sep 11
itsamess
says...
11:11pm Mon 5 Sep 11
Russell Holland
says...
11:21pm Mon 5 Sep 11
prole
says...
11:22pm Mon 5 Sep 11
itsamess wrote:This is truly joined up thinking.
Without any political preferences on my part--i see the income from this housing as beneficial to the town--and a platform to build more.
Perhaps if the council in planning the future builds would give companies other than SCS a chance as in every likelihood they would provide a better build at a better price.
itsamess
says...
11:27pm Mon 5 Sep 11
itsamess
says...
11:39pm Mon 5 Sep 11
prole
says...
11:42pm Mon 5 Sep 11
Russell Holland wrote:Just checked and the plan was to have the ballot in November. This is what was voted on in the council.
Prole - you will note from the article that negotiations in respect of ballot timing are taking place. I will give an update when I can.
I think a ballot is the right thing to do.
Russell Holland
says...
11:52pm Mon 5 Sep 11
Russell Holland
says...
11:58pm Mon 5 Sep 11
prole
says...
12:05am Tue 6 Sep 11
Russell Holland wrote:Surely not all officers will become employees of the new association. Some will have to be retained to monitor the housing on behalf of SBC for statutory purposes.
itsamess - I agree that an opposition Councillor should be on the shadow board but if Labour do not wish to be on it then that is their decision. It is up to the Shadow Board but I think if Labour are unwilling to go on it then liberal would be the next best choice because there should be a mix.
The experts won't be council officers because if tenants vote to transfer then the officers will become employees of the new association so they would not be able to be on the board.
The Council position is that there are benefits to transfer but it is neutral as to how tenant's vote. There is an independent tenant adviser to ensure fairness.
Russell Holland
says...
12:23am Tue 6 Sep 11
I 2 Could B
says...
5:18am Tue 6 Sep 11
Punctured bicycle on a hillside wrote:I know, didn't they make a mess of things.
Indeed, it's almost like it was all Blair's fault, just like the entire world's economic crisis is all Gordon Browns fault and nothing to do with scandalous banking practices that major banks are now being sued for.
Robfm
says...
7:44am Tue 6 Sep 11
Russell Holland
says...
8:00am Tue 6 Sep 11
Robfm
says...
8:18am Tue 6 Sep 11
Robfm
says...
8:34am Tue 6 Sep 11
itsamess
says...
8:53am Tue 6 Sep 11
Robfm
says...
9:00am Tue 6 Sep 11
itsamess
says...
9:30am Tue 6 Sep 11
Robfm
says...
9:39am Tue 6 Sep 11
Russell Holland
says...
9:57am Tue 6 Sep 11
itsamess
says...
9:58am Tue 6 Sep 11
Robfm
says...
10:06am Tue 6 Sep 11
Russell Holland
says...
10:18am Tue 6 Sep 11
itsamess
says...
10:18am Tue 6 Sep 11
Robfm
says...
10:42am Tue 6 Sep 11
prole
says...
5:13pm Tue 6 Sep 11
itsamess
says...
5:45pm Tue 6 Sep 11
Robfm
says...
6:02pm Tue 6 Sep 11
itsamess
says...
7:05pm Tue 6 Sep 11
Russell Holland
says...
9:51pm Tue 6 Sep 11
itsamess
says...
11:24pm Tue 6 Sep 11
Russell Holland
says...
11:50pm Tue 6 Sep 11
itsamess
says...
12:40am Wed 7 Sep 11
Robfm
says...
6:01am Wed 7 Sep 11
itsamess
says...
6:43am Wed 7 Sep 11
Robfm
says...
6:48am Wed 7 Sep 11
Punctured bicycle on a hillside
says...
8:04am Wed 7 Sep 11
Robfm
says...
8:19am Wed 7 Sep 11
Russell Holland
says...
9:17am Wed 7 Sep 11
Robfm
says...
9:28am Wed 7 Sep 11
itsamess
says...
11:07am Thu 8 Sep 11
Robfm
says...
11:39am Thu 8 Sep 11
itsamess
says...
12:47pm Thu 8 Sep 11
itsamess
says...
12:55pm Thu 8 Sep 11
Robfm
says...
12:56pm Thu 8 Sep 11
itsamess
says...
1:58pm Thu 8 Sep 11
Robfm
says...
5:49pm Thu 8 Sep 11
Russell Holland
says...
6:13pm Thu 8 Sep 11
itsamess
says...
8:10pm Thu 8 Sep 11
Robfm
says...
7:30am Fri 9 Sep 11
Punctured bicycle on a hillside
says...
8:23am Fri 9 Sep 11
Robfm
says...
8:57am Fri 9 Sep 11
itsamess
says...
9:51am Fri 9 Sep 11
itsamess
says...
10:06am Fri 9 Sep 11
Robfm
says...
10:08am Fri 9 Sep 11
Robfm
says...
10:19am Fri 9 Sep 11
itsamess
says...
11:20am Fri 9 Sep 11
Robfm
says...
11:25am Fri 9 Sep 11
Russell Holland
says...
4:21pm Fri 9 Sep 11
Punctured bicycle on a hillside
says...
4:37pm Fri 9 Sep 11
Robfm wrote:Well that would be today then, like most days. So stop lying and pretending to be the thread police.
Punctured I look forward to the day you post on thread, but sadly that won't happen either.
Given you claim to live in Swindon, that's the only place you could 'pop along' too, and I don't think they have onsite dining facilities.
Robfm
says...
4:59pm Fri 9 Sep 11
Punctured bicycle on a hillside
says...
7:07pm Fri 9 Sep 11
itsamess
says...
10:25pm Fri 9 Sep 11
itsamess
says...
12:21am Sat 10 Sep 11
Russell Holland
says...
7:25am Sat 10 Sep 11
Robfm
says...
7:54am Sat 10 Sep 11
itsamess
says...
9:00am Sat 10 Sep 11
Robfm
says...
9:09am Sat 10 Sep 11
Punctured bicycle on a hillside
says...
9:27am Sat 10 Sep 11
Russell Holland
says...
9:53am Sat 10 Sep 11
Robfm
says...
9:58am Sat 10 Sep 11
itsamess
says...
11:13am Sat 10 Sep 11
itsamess
says...
11:49am Sat 10 Sep 11
Robfm
says...
4:48pm Sat 10 Sep 11
Robfm
says...
4:58pm Sat 10 Sep 11
Russell Holland
says...
5:05pm Sat 10 Sep 11
Punctured bicycle on a hillside
says...
6:41pm Sat 10 Sep 11
itsamess
says...
10:48pm Sat 10 Sep 11
itsamess
says...
12:15am Sun 11 Sep 11
Russell Holland
says...
8:49am Sun 11 Sep 11
Robfm
says...
10:16am Sun 11 Sep 11
I 2 Could B
says...
10:21am Sun 11 Sep 11
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A.Baron-Cohen says...
10:14am Mon 5 Sep 11
Councillors left and right use Democracy as a political tool...but when it comes to the crunch none are ready for it!