HOUSING bosses in Blackburn are being urged by the Government to increase rents by just 73p a week next year.

But council leaders have warned council house tenants could still face huge rent increases despite the Government's announcement.

The Government guidelines mean the more rent is increased by councils, the lower the subsides from Westminster.

And Labour leaders on Blackburn with Darwen Council are calling on the Government to take another look at the situation.

The move follows a nine per cent increase last year which saw the average rent for a council house in the borough rise by £3.90 a week.

Finance bosses have revealed £7 million will have to be cut if the council wants to balance its books in the coming financial year.

Housing minister Hilary Armstrong announced the new guidelines in recommendations for councils across the country. Burnley is being urged to increase rents by just £1.22 a week and Pendle by 70p. Hyndburn and Rossendale by 72p and the Ribble Valley by £1.22.

The minister also promised extra cash for councils who have used funds from the sale of houses on repairing rundown stock.

Hilary Armstrong said: "We are proposing that the average guideline rent for 1998 should increase by 97p a week. Guideline rent increases for individual authorities would range between 72p and £1.22."

She added: "To encourage authorities to keep their rent increases within the guidelines we propose to continue with the present rule that limits rent rebate subsidy.

"This gives authorities a strong incentive to keep rent increases down to reasonable levels but does not affect tenants' entitlement to housing benefits." Blackburn with Darwen housing chairman Mohammed Khan said: "As a council we agree rents should be kept to a minimum.

"However, it is not quite that simple. The previous Government set up a system which penalised councils like Blackburn with Darwen and the new Government is having to deal with that legacy.

"We believe our guideline allowances have been wrong for years yet the previous Government would not listen.

"We have told the the minister we will be seeking help on this matter and she suggested we present our case to her.

"If the former Government's rules stay in place our tenants will be forced to bear the brunt of the last Conservative administration and that will mean in order to provide the current level of standards we could be looking at substantial rent increases or a reduction in service."

Town halls are being invited to comment on the guidelines and have been set a deadline of December 17.

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