Government Association, has criticised mismanagement by the government that has cut£70m from planned housing expenditure.
She said: 'The Labour government has made local authority housing pay for DETR's inability to keep within its own budgets. Government spending on housing in 1998/99 will be cut by£70m compared to previous plans.
'By taking $30m from the Estates Renewal Challenge Fund, tenants
Capital Receipt Initiative has done little more than stabilise overall housing investment'.
'These latest changes mean that the Housing Investment Programme is cut by 12.5 per cent next year', Cllr Chapman said.