CALLS have been made for the government to write off Swindon Borough Council's £100m housing debt.

The authority took on the debt when it was imposed on the authority by the government in 2012 under new rules.

But now a tenants' group says it should be written off.

Secretary of Swindon Tenants’ Voice, Martin Wicks said: “Unprecedented events have forced the government to do things which it would never have considered a few weeks ago. One of those was their decision to cancel £13.4 billion NHS debt. This sets a precedent.”

The housing debt has meant the authority has been unable to build more council homes.

At a cabinet meeting, Cathy Martyn the council’s Conservative cabinet member for housing, said: “Debt put on the council’s Housing Revenue Account in 2012 as a result of self-funding means we cannot build more social housing.”

Russell Holland, the cabinet member for finance, said the choice was offered whether to take on the debt or have the council sell off its housing stock to a housing association, adding: “Tenants voted in 2012 to choose whether to keep the council as their landlord, which meant taking on an additional debt of £138m, or to become a housing association where that debt would not have to be paid. “

Tenants voted to remain with the council and take on the additional debt. That debt now stands at £104m – more than £5m of the rent paid to councils goes every year to service the debt.

Coun Holland said the council now has a shortfall in its council housing improvement programmes of just under £90m over the next five years.

Coun Martyn, added: “We prioritise works which will keep our existing council house stock in the best possible condition as well as making continuous improvements.”

“At the end of the day, we’re here for the tenants and we always strive to do our best for them.”

Emma Bushell is the Labour group’s spokesman on housing, said: “We question whether the debt imposed on the council, and many others in the UK, was fair in the first place. It is clear that the debt makes it more difficult for councils build new houses.

“It seems inevitable that the financial consequences of Covid-19 will mean many more people struggle to afford decent housing. The government must start properly funding councils to build the decent houses that residents need and deserve.”