Bid fails to half Highland Council homes rent increase

Around 13,500 Highland Council tenants will have to fork out an extra £66.24 this year in rent after a 2 per cent hike was approved, despite an aborted bid to halve the increase.

The rent charge will rise from £68.99 to £70.37 - an increase of £1.38 a week - from April onwards.

Around 42 per cent of households currently pay the full cost, the rest are eligible for full or partial housing benefit payments.

But there was a heated clash setting the increase after two opposition councillors suggested a one per cent hike instead.

Michelle Morris, the council’s assistant chief executive, told Independents Donnie Mackay and Laurie Fraser that their proposed motion was not competent because they could not pinpoint where they would make the savings.

That sparked an angry response from their group leader Carolyn Wilson who admitted councillors might not have supported the motion if it had gone to a vote but accused Ms Morris of "stifling democracy" because they never got the chance.

David Alston, the council’s depute leader, said the Independents had several days in which to draw up alternative proposals before Wednesday’s housing committee meeting but nothing had been presented. "This is the housing revenue account which needs to be balanced," said Councillor Alston.

A two per cent increase was also imposed on tenants last year but

Dave Fallows, the council’s housing committee chairman, said it was a small increase and confidently predicted it would be lower than housing associations.

"I am aware that out of our partners, only one in the registered social landlord sector has actually made public their increases for next year, that’s Lochalsh and Skye [Housing Association], whose increase is 3 per cent," said Councillor Fallows. "But the other ones are out to consultation and all of them, without exception, are substantially higher than our 2 per cent increase ."

Councillor Mackay had demanded it should be pegged to 1 per cent because working tenants were struggling to cope.

"Never have I seen this situation in poverty, right through the Highlands," he said. "It is the first time I have seen foodbanks in the towns of Wick and Thurso. It [rent increase] doesn’t affect the people who are unemployed because their rents are being paid. It is the people who are on the borderline, their wages are not going up."

He suggested savings could be made by reducing the high number of "voids" – properties which were left empty after tenants had left - to finance a 1 per cent increase.

But finance director Derek Yule said about £470,000 would be needed to balance the books, the equivalent of cutting 20 staff.

Inverness councillor Richard Laird said most of the tenants in his ward would back the increase and challenged Councillor Mackay to outline where money could be found.

"I am bemused by Donnie Mackay’s comment, which of the other budgets would he like to see cut?," he said. "We either reduce what we spend or raise the rent. Simply standing up and saying people are in poverty in our communities, we know that, but what is the alterative?"

No motion came forward.