Labour can reveal that the construction of new council housing in Brighton & Hove and up to 100,000 council homes nationally could be scrapped, now that the Tory-led Government has reneged upon their promise of extra cash to build them.

Last year, Tory Housing Minister Grant Shapps said that he was implementing the previous Labour government’s policy of allowing councils to be able to keep 100% of the rent from council tenants, so they could build more homes. But in a sudden about-turn, the government will now pocket 75% of rental income, leaving only 25% to be used by councils.

It is not yet known how this U-turn will affect new housing plans in Brighton & Hove, at a time when housing budgets are being set.

Brighton & Hove Labour Leader Councillor, Gill Mitchell, said:

“Reform of housing finance was long overdue, so it’s sad to see yet another Tory promise bite the dust at a time when there is a dire need for more affordable housing in Brighton & Hove.”