Funding gap in North Lanarkshire Council’s housing budget has increased

A funding gap in North Lanarkshire Council’s housing budget has increased slightly, just months before the local authority sets its budget. The shortfall has grown from £6.9 million to just over £7 million, resulting from various factors including increased staffing costs, changing repairs costs, higher borrowing than previously forecast and inflation. This may have some repercussions for the cost of rent for council tenants.

The council currently rents out around 35,000 homes, although its current rent levels, averaging £86.45 per week, are slightly lower than the Scottish average. Late last year, the council approved its housing revenue account of £174 million, 92 per cent of which was to be raised through tenants.

Some 25,000 tenants currently receive some sort of support towards their housing costs, with almost half receiving the housing cost element of universal credit and one quarter getting housing benefit. The council’s housing committee formally acknowledged the updated position at a recent meeting, and it also agreed to review the impact on estimates which will be used to determine rent levels for 2025/2026.

In the wake of these developments, there are concerns about the potential impact on the housing situation in North Lanarkshire. The council may need to explore alternative sources of funding or consider cost-saving measures to address the increasing gap in the housing budget. It remains to be seen how this situation will unfold and what measures will be put in place to ensure that housing services can continue to be provided effectively to residents in need.

This news comes at a critical time when housing affordability and availability are pressing issues in many communities. The council’s response to this funding gap will be closely watched as it navigates the challenges of maintaining a balance between financial sustainability and meeting the housing needs of its residents.