Colchester City Council’s Leader has written to the Deputy Prime Minister to press for urgent Government action to support councils facing mounting housing pressures, including homelessness and temporary accommodation costs.
Councillor David King, Leader of Colchester City Council, welcomed the priority given to housing in the recent Spending Review, which sets out the biggest boost to social and affordable housing in a generation. However, he cautioned that major challenges remain for councils, particularly those responsible for maintaining and building council homes.
He has written to the Deputy Prime Minister and Secretary of State for Housing, The Rt Hon Angela Rayner MP, calling for urgent action to support stock-holding councils facing mounting housing pressures. The letter builds on Colchester’s joint work with Southwark and other authorities to raise awareness of the growing challenges local councils face in tackling homelessness and delivering affordable housing.
Cllr King said: “We know Colchester is not alone. Across the country, councils are being asked to do more with less, while demand for temporary accommodation continues to rise and inflation erodes our ability to build and maintain homes.
“That’s why I’ve written directly to the Deputy Prime Minister to outline the urgent steps Government should take if it is serious about supporting local councils and tackling the housing crisis.”
The letter includes the following specific actions Government could take to make a difference quickly and fairly:
- Update the 2012 HRA Self-Financing Settlement: As recommended by the Chartered Institute of Housing and Savills, bringing Housing Revenue Accounts (HRAs) back in line with their original 2012 objectives would help councils maintain existing homes and build new ones, supporting Government targets to deliver 1.5 million homes this Parliament.
- Uprate Local Housing Allowance (LHA) and Temporary Accommodation Subsidy: The LHA rates and subsidy rules have not kept pace with inflation or local market rates. The current rules, still tied to 2011 figures, are creating unsustainable financial pressures and impacting the quality of support councils can offer.
Cllr King added: “Without urgent change, councils’ risk being unable to maintain the homes they have, let alone build the homes we so desperately need. We stand ready to work with Government, but we need fairer funding and long-overdue reform to do so.”
The letter urges Government to act swiftly to help safeguard the financial sustainability of Housing Revenue Accounts and ensure local authorities can continue to support residents at risk of homelessness or in need of social housing.
Page last reviewed: 20 June 2025