Council rents set to increase in Arun

The rise is set to be agreed by Arun district councillors on February 18 after it was backed by the council's cabinet.

It is more than six times higher than the current inflation rate of 0.9 per cent because it is based on the rise in prices last September.

That month saw inflation reach a peak of five per cent. Council head of finance Alan Peach said the formula for calculating rents was set by the government.

"The rent increase does not compare favourably to inflation at the moment but it is something we have little control over," he said.

"At least, benefits and pensions received by some tenants are also linked to that September inflation rate so the rent increase will be cushioned to some extent."

Arun is also being hit by the government's demands to pay 4.4m from its rental income straight to Whitehall.

This is a near 1m rise on the current subsidy.

Cllr Gill Brown, the council's leader, said she was hopeful Arun's complaints about the subsidy were finally paying off.

"Quite soon, I am hopeful we might have some good news on that. It could be we will be able to keep up to 50 per cent of that money to be spent on providing decent homes and affordable homes. That might make our financial picture look quite so bleak," she said.

Cllr Norman Dingemans (Walberton) said: "I wonder how many of our tenants are aware their rents are removed by the government to the tune of 4.5m. The money disappears and never comes back."

Councillors will also be asked on February 18 to write to the government and local MPs protesting about the size of the rent increase which has to be imposed and the subsidy the council has to pay.

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