Liberal Democrats are warning that government policy could see York lose up to £455 million and prevent the building of council homes in the city.

A report from council officers says policies introduced by the Conservative Government since last May mean the council’s housing income will “at best be reduced by £340m and at worst £455m over the next 30 years”. Officers are warning that significant savings will need to be made to balance the books with forced reductions in spending meaning: “It is likely that any future building programme for new council homes will need to be significantly reduced or ended completely”.

The officer projections form part of the council’s draft 30-year ‘Housing Revenue Account Business Plan’ which will be discussed by York’s Executive tonight. The report says the looming budget shortfall is a result of Government social housing rent cuts and the effects of plans to extend the controversial Right to Buy policy – which officers say will “disproportionally” hit York as the council is forced to sell-off homes across the city.

Cllr Sue Hunter, Liberal Democrat Spokesperson for Housing, is writing to Housing Minister Brandon Lewis on the issue. She commented:

“We know the scale of the housing problems in York with a shortage of affordable homes and sky-high rents. Liberal Democrats want to increase the building of council homes, but at the moment Conservative Government policy is threatening to make this impossible as they continue their national attack on council and social housing.

“Officers are clear that the council could lose between £340m and £455m over the next 30 years as a result of national policies. At the same time, the Government is forcing us to sell-off so-called ‘high-value’ council homes across the city. It is a perfect storm for the council and one which will only deepen the housing crisis in York.

“I am writing to the Housing Minister to ask him to rethink the plans. As well as this issue, residents I speak to are also concerned about the proposals for market rents and the ending of lifetime tenancies for new social housing tenants. We need more clarity from the Government in this area.”