Council stock bid falls down

Hopes of transferring Cannock council's housing stock have dramatically collapsed.

Talks between the council, a housing association and the Government have failed to produce a realistic deal which will leave thousands of tenants with a reduced service.

Now councillors will be asked to vote in support of a rescue package at a meeting on Wednesday in a bid to help the council meet its minimum standards.

Under the plans around 25 single person bungalows will be sold off to try and finance the cash shortfall of almost £3 million which is needed for the council to maintain the minimum standards until 2014.The news will be a body blow to officers at the council and members of the ruling administration who had hoped to transfer council homes to a housing association who would raise standards far above the minimum.

Cabinet member for housing, Brian Williams, admitted he was "disappointed" and told the Express & Star it was now a "fact" the council would not be able to offer the same level of service as a housing association.

This follows a decision in March last year in which a narrow majority of just 170 residents voted against stock transfer despite warnings from the council that it would lead to worse housing services. Because of the narrow majority the council decided to re-ballot the tenants and pursue a deal with the Manchester-based Harvest Housing group and the Government.

But the Government offered around £10 million less for the deal leaving a massive shortfall which neither Cannock council or Harvest Housing were prepared to fill.