Luton Borough Council calls on government for action on ‘national £2.2 billion council housing budget black hole’

A report, Securing the Future of Council Housing, was backed by more than 100 councils and highlighted that the national council housing system is in crisis

Luton Council has signed a joint statement urging the government to help turn things round.

The statement read: “The new government’s commitment to a ‘council housing revolution’ is a huge step forward for communities across our country.

“The Chancellor’s first Budget and spending review are a once-in-a- generation opportunity to fix England’s broken council housing finances.

“The last government tore up its 2012 council housing settlement and left local government with a £2.2 billion black hole in housing budgets.”

The council said a Green and Decent Homes Programme should be brought in to deliver “the more and better council homes”.

Cllr Hazel Simmons, leader of the council, said: “Council homes are so much more than bricks and mortar – they are a cornerstone of a better life.

“But our country’s council housing is in crisis – policy decisions over the past decade have pushed finances to the brink and undermined the sustainability of the system.”

Cllr Simmons said that 198 homes have been lost from the authority’s social housing stock since 2021, "which highlights the urgent need to reform unsustainable Right to Buy policies”.

She added: “We’re calling for government to take this once-in-a-generation chance to fix England’s broken council housing finances, address unsustainable debt, and help us to make sure future generations in Luton have the council homes they need.”