Portsmouth City Council increases council house rents - but by less than it had planned to

Portsmouth City Council cabinet member for housing Darren Sanders revised his draft budget proposals on Monday to instead approve a 3.5 per cent increase.

'Energy prices are going through the roof,' he said. 'There is a National Insurance rise so we are in an unenviable decision on this.

'Although [a 4.1 per cent increase] is financially the most prudent thing to do, you can't use rent rises to sort out your long-term deficit.'

A report had recommended the larger increase due to rising staffing costs, soaring energy prices and Right to Buy purchases required a third year of above-inflation rent increases in the city.

But concerns were raised about the impact the 4.1 per cent rise would have on council tenants.

Cal Corkery, the Labour spokesman for housing, said it would be 'punishing' the hardest off.

Speaking last week, Cllr Sanders said he was considering ways to lower the figure, despite the department budget running at a deficit.

On Monday he said the lower 3.5 per cent rise was the smallest possible.

'I would love to freeze or cut rents this year, because I think the cost of living crisis is so great,' he added. 'However, I have to make sure that we have a prudent approach. We can't have jam today and pain tomorrow.'

Final approval of the rent increase will be given when the council agrees its annual budget next month.