Blackpool councillors are set to debate a report outlining changes which could transform council housing in the resort - but insist it is not connected to proposed rent rises.

Council cabinet members will consider the report on the setting up of a new Arms Length Management Organisation (ALMO) to reorganise the way council-owned housing is managed in the town during a meeting on Wednesday February 8.

If approved the report could see an ALMO - a non-profit making local authority-owned organisation introduced by government as an alternative to housing associations - established in Blackpool by autumn 2006.

This would mean that council tenants could still enjoy all the benefits of living in council-owned property, but the day-to-day running of the housing service would be transferred to the ALMO who act as a separate managing agent for a five to ten-year period initially.

If successful the move could also see extra government funding available to the council for improvements to housing stock such as the upgrading of bathrooms, kitchens and roofing.

Rises in council rents - another topic up for discussion during Wednesday's meeting - will remain unaffected by the introduction of the ALMO and will only increase in line with the authority's annual rent review - which, this year, is set to rise by 3.4 per cent.

Blackpool Council's Cabinet Member for Adults, Community Safety and Health, Cllr Sue Wright said: "We are constantly looking at how we can improve our housing services and get better value for money for all.

"Similarly, we are also committed to efficiency savings, improvements in repairs, and investment in our current stock."

Under Government guidelines, rents are due to increase by a set amount above the rate of inflation until at least 2011.