Forum Topic

Conservative leaflet

I have received another leaflet from Wandsworth Conservatives.The leaflet makes an extraordinary claim...'Council debt now expected to be £1.9bn - up from ZERO in 2022'"expected to be" doesn't give a timeframe but if true, how could debt possibly increase by £1.9 billion since 2022 ?

Adam Tripp ● 32d4 Comments

Mr Hawkes There is a high demand for public housing. Your question seems to mischievously link Wandsworth investment with immigration.The facts are that significant numbers of people 'with a wandsworth' connection are currently in unsatisfactory expensive temporary a accommodation. The 1000 units will not solve the problem but will help those in desperate need of housing.I would also add that over the nextv20 tears many new Wandsworth folk will grow from childhood to adult hood and seek suitable housing plus those not yet born.You can make it about immigration but that is to fail to understand the need for genuinely affordable housing in the public  sector.

Andy Pike ● 28d

Mr Tripp'WBC intends to borrow £780m for social housing'Where are these people living now, or have they not arrived yet ?

John Hawkes ● 28d

Good morning Andy, thank you for the reply. According to chatgpt (not always reliable), WBC intends to borrow £780m for social housing which will be repaid over 50 years, so £1.9bn with interest. Not quite so scary when explained!

Adam Tripp ● 28d

I have tried twice to respond and both times they have disappeared, heretics 3rd time lucky.AdamNot sure if that figure is correct but I have a theory on why the Councils debt will grow to a big number over time.If I'm right the good news is it shouldnt have a negative effect on the general fund council tax account.When the current administration were elected they chose to stop the joint ventures at Yirk Road and Roehampton and move from a mixed tenure development to a 100% public housing of the new build.Prior to this a percentage of the new build was to pay for the whole scheme. Having changed policy the schemes now need funding by the Council and hence the need to borrow significant sums over the period of the build out.These projections and costs will fall 100% on the ring fenced Housing Revenue Account ( HRA). By law this account is reviewed annually and must stay in surplus for a 20 year projection year on year. My experience of the treasury staff at Wa dsworth gives me confidence this is the case.So the benefits are no negative impact on the general council tax account .1000 new properties added to the councils portfolio to house people off waiting lists or temporary accommodation.Substantial ongoing rental income into the HRA from these properties to set against the build costs, loans etc.There is also a spin off for the general council tax account in that the cost of housing homeless families in bed and breakfast of temporary accomodation is set against the general fund and not the HRA. Therefore there is a significant positive effect fir the Council, plus more properties for letting.The above is reliant on my theory being g right as to why this 'debt'may accrue and no changes since  I retired to the rules that govern local govt finance.

Andy Pike ● 30d