Campaigners working towards for a fairer deal for Sutton council tenants have secured a second small victory, after the Government pledged to overhaul the council house finance system.

The Government currently uses Sutton tenants’ rents to pay for improvements to housing and housing debt in other parts of the country.

Council tenants across the borough currently pay the Government £10m per year, in what is known as a negative housing subsidy.

But a combined campaign by Sutton Federation of Tenant and Resident Associations, Sutton Council and borough MPs Paul Burstow and Tom Brake has prompted Housing Minister John Denham to set out plans allowing councils keep the proceeds from rent payments and council housing sales.

Mr Denham pledged to hold a consultation on reforming the council house finance system.

He said: “We want to see a bigger role and more responsibility for local authorities to meet the housing needs of people in their areas.”

The move comes after protesters won a first partial victory to halve a projected 6 per cent rent rise to 3.1 per cent.

Chairman of Sutton Federation of Tenant and Resident Associations Jean Crossby said: “For too long we have been subsidising other councils and tenants in other parts of the country.

“As this moves forward we must make sure money from council tenants’ rents is only used on housing in Sutton.”

Councillor Sean Brennan said: “The current system – where some of the poorest residents in Sutton are paying for social housing in other parts of the country – simply cannot go on.

“This is money we need to provide more and better homes for local people “We welcome the Prime Minister’s announcement and will certainly use the consultation to repeat our calls for this unfair policy to be scrapped.”

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