Dear Editor, I refer to the letter from Ian Wright MP (Minister for Communities and Local Government) published in the Birmingham Post on March 5 and feel compelled to respond and set out the facts.

The original article referred to, in the Birmingham Post on February 26, explains clearly that the £100 million contribution is based on the Government’s own forecasts over the next few years. This sum includes a contribution of £70m (up from £57m in 2008/09) from the tenants’ rent account and a further £25m from income that is repaid to the Government from the income received from tenants who buy their properties.  

The contention that Birmingham received £3.6m in 2007/08 is also inaccurate in two respects. Firstly, this represents a payment of £39m to the Government from the tenants’ rent account and offset by the major repairs allowance that the Government calculates is necessary for maintaining properties in good condition.

Secondly, it is overstated as this was an estimate and was eventually reduced to £1.2m following the final calculations for that year. In effect, the tenants of Birmingham are fully funding the entire investment in their properties.  

The “top-up investment” of £1.3bn that is referred to is also not clear. If this relates to the major repairs allowance, then this is now being funded entirely by tenants from their rents as a whole for the country.

In any event, it should also be stated that the council has repaid to the Government almost £180m since 2004/05 in receipts generated from tenants exercising their right to buy their homes.

Finally, taking everything into consideration, namely the money paid by tenants and the council (through the rent account and right-to-buy receipts) to the Government and the income that is received by the council from the Government (through the major repairs allowance and Regional Housing Executive) shows that the council has paid over £160m to the Government from 2004/05 to 2009/10.

I have continuously pointed to the unfairness and inequity of the current finance systemm as have almost all local authorities to the Government. I have already submitted proposalsfor a new financial framework and look forward to this being implemented so that the tenants of Birmingham and, indeed, the country receive a fair and equitable deal.

I joined Birmingham tenants and other authorities across the country, in London last week, lobbying with MPs who understand and appreciate the difficulties that local authorities like Birmingham face. Where was Ian?

Coun John Lines

Cabinet Member for Housing

Birmingham City Council