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COUNCIL RENT INCREASES REBOUND ON GOVERNMENT COFFERS

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Steep local authority rent rises have cost the government millions of pounds, according to a new study, BBC Radio F...
Steep local authority rent rises have cost the government millions of pounds, according to a new study, BBC Radio Four's Today programme reporting this morning.

The study by Oxford Economic Forecasting, sponsored by the Joseph Rowntree Foundation, says the government's policy of rent rises has damaged its own aims of cutting inflation and public spending.

Social security spending has risen because 60p in every pound of rent increase is claimed back by tenants in housing benefit.

Higher rents are also inflationary as they form part of the retail price increase. An increase in rents of 10% results in extra government spending of £100m a year, the report concludes.
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