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More than 100 councils are expected to attend an emergency summit next week to discuss the financial crisis facing local authorities over soaring demand for temporary accommodation.
The summit, being hosted by Eastbourne Borough Council and the District Councils’ Network (DCN), will lead to a joint letter to the Treasury ahead of next month’s Autumn Statement.
Government figures revealed earlier this month that councils spent £1.74bn on temporary accommodation between April 2022 and March this year.
“This is wholly unsustainable for councils, and the situation is now critical,” said Stephen Holt, leader of Eastbourne Borough Council.
A spokesperson for the organisers told Inside Housing that “over 100” councils have said they will attend the online summit being held on Tuesday.
Lee Rowley, local government minister and a former housing minister, has been invited to the event, according to the organisers. However Inside Housing understands that the Department for Levelling Up, Housing and Communities (DLUHC) does not have a record of him being invited.
According to the summit’s organisers, the event will look at various solutions for the government to consider.
This includes giving district councils the “powers, funding and resources needed to increase the supply of social housing”.
Increasing Local Housing Allowance rates for private rented accommodation and developing “policy to stimulate retention and supply in the privately rented sector” will also be examined.
The event will also look at the idea of reviewing the housing benefit subsidy rate for local authority homelessness placements.
Boosting the level of discretionary housing payment and homelessness prevention grant is also expected to be discussed.
Hannah Dalton, the DCN spokesperson for health, housing and hardship, said: “Across the country, we are experiencing a spiralling tide of need, driven by a severe shortage of social housing, the cost of living crisis and an unstable and unaffordable private rented sector.
“This means, as district councils, we are placing an unprecedented number of people in temporary accommodation, which is cripplingly expensive for councils and unsuitable for residents.”
An increasing number of local authorities have been facing financial difficulties, with Woking Borough Council among the latest to face government intervention.
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