Council hands £15m from sale of council homes to government-instead of building homes with the cash

Labour-run Haringey Council has handed the government £15m from the sale of local council homes under right-to-buy. The Labour council had to give the money to the government after they failed to spend the cash on building new affordable homes for rent.

The figures were revealed by Haringey Liberal Democrats after Cllr Gail Engert asked questions about what had happened to the money from Right-to-Buy sales at a Cabinet meeting in July. She was not given an answer at the time but was subsequently sent a written response which disclosed the massive amount being sent to the government.
The response from the Labour-run council also stated that of the £24.7m the council received from right-to-buy sales of council homes they sent over half of the cash £14.7m, plus interest of £980,000, to the government.
Cllr Gail Engert, Haringey Lib Dem Leader of the Opposition, comments:
“I was shocked to find out that Labour-run Haringey has sent over half of the money from right-to-buy sales of council homes to the government rather than using the money to build affordable homes for rent.

“There are thousands of families on the waiting list for a council home here in Haringey, we desperately need affordable homes. It is very disappointing that so many millions that could have been spent on affordable homes here in Haringey has been sent to the government because Labour are not building homes. Despite Labour’s promises about building homes they have still not built a single new council home for 25 years.”

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