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Heating Bills to Rise and Rent Rise Threatened
September 9, 2008 11:18 AM
Heating Bills are to rise by 65% after Labour failed to negotiate lower charges
Lambeth Labour was last night forced into a humiliating U-Turn over its proposed 162% heating bill increase for tenants living on estates with communal heating systems.
But the massive climbdown by Labour still leaves tenants facing bills of around 65% in November which Labour leaders apparently think is reasonable compared to the 40-50% industry average in the private sector.
The sting in the tail - as with all Labour announcements - is that they would not rule out a further rise this year in rents or other charges as the embattled administration struggles to balance its books in the wake of the £14 million ( and rising ) scandal of over-payments to private landlords for non-existent homeless people.
Tenant leaders lined-up to rebuke Labour for it's total mismanagement of housing and wondered how they expected people on lower than average wages or benefits to pay for their mistakes?
Labour councillors just had to sit there and take the blows before announcing the biggest U-Turn - well - since the U-Turn over driving care charges up to £20 an hour.
One thing Labour red-faces couldn't hide was the excellent fixed-price deal negotiated by the previous Lib Dem-led administration which had held charges steady.
The big mystery is still why Labour apparently sat on its hands waiting for this contract to expire before seeking to negotiate another. Perhaps only surpassed by the mystery of why they sat on their hands from Spring 08 until now to announce their shock increase.
However Labour tries to juggle the balls this was a balls-up of the highest order.