Council leaders have called for radical reform of the housing finance system claiming the current system is not fit for purpose, and an obstacle to tenants getting the homes and services they deserve.

The call was made by Sir Simon Milton, Chairman of the Local Government Association, at the Chartered Institute of Housing's (CIH) Annual Conference and Exhibition in Harrogate.

Sir Simon said: "We need a system that ensures that money raised from tenants is spent on council housing and their neighbourhoods, and not allocated elsewhere. That is why we are calling for the end of the 'housing revenue account' to provide funding streams at the local level which will lead to better outcomes for local residents."

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Sir Simon also expressed concern about the role of Government in the management of housing. He said: "Let the message go out to central Government that increasing central control won't work. Stop micro-managing the housing sector and allow councils and housing associations, residents and tenants, and the entire housing sector to work together.

"Stop clinging to outmoded ways of thinking and lets build together a grown-up relationship which will create places we all want to live in."

(CD)