Memorandum from Stroud District Council (BOP 46)
It concerns the real practical difficulties which Stroud District Council as a stock retention authority now faces. The problem is an illustration of difficulties which have arisen in relation to the balance of power between central and local government. In this case, central government imposes financial constraints through the Housing Revenue Account Subsidy System (HRASS), sets the housing standards to be achieved, namely the Decent Homes Standard and compliance with the Housing and Health Safety Rating System (HHSRS), target dates by which those standards are to be reached, whilst withdrawing the financial ability to do so through the constraints of the subsidy system. By way of illustration, of the £19 million paid in rent by Stroud District Council tenants in 2007/08, £5 million, rising to a projected £5.8 million in 2008/09, is be paid back to central government in negative subsidy. The result of this system means that Stroud District Council is in a position whereby it is increasingly unable to achieve the targets imposed by central government.
Yours faithfully,
Frances Roden Cabinet Member for Housing
September 2008
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