CASH for major council house improvements will be frozen to make sure that housing association schemes can continue.

Bosses are expecting ministers to grant them a 12 per cent rise in spending under the annual Housing Investment Programme (HIP) budget.

But virtually all the increase will be spent on high-profile projects carried out in partnership with others.

The council spends its HIP money on four categories: public housing, private housing, housing associations, and community-based initiatives.

However, Bury has been told that the amount of money anticipated to come in for housing association works will be £1 million less than last year.

The authority is already committed to funding several large schemes such as the East Ward regeneration project and in turning Claremont old people's home in Prestwich into very sheltered housing.

Finance chiefs say the shortfall demands that the amount Bury gives to housing associations from its HIP allocation must be substantially increased from last year's £224,000.

They admit this can only be done at the expense of an almost total financial standstill on public and private sector housing. If Bury does receive a 12 per cent rise, these two areas will be allocated £2.9 million each, the same as the current year.