GOVERNMENT moves to axe a grant to help local authorities with social housing could mean the loss of £1.4-million to help tackle the affordable housing crisis in West Devon.

The council has reaffirmed its commitment to £3.2-million on affordable homes, despite the Government?s announcement it will pull the plug on the Local Authority Social Housing Grant from April 1, following a decision by Deputy Prime Minister John Prescott.

The news has caused dismay within the council as it was only notified of the changes in a letter from the Government last week.

The announcement came at a time when councils were in the middle of setting their capital budgets for the forthcoming year.

Chief executive of West Devon Homes Stuart Davies said: ?This is disastrous news for the people of West Devon, as West Devon Homes have established a good development programme and are well on target to deliver over 150 homes in our first five years.

?The decision to abolish the local authority social housing grant knocks a big hole in our plans and will probably lead to a huge reduction in the number of new affordable homes being developed.

?We hope the Government sees sense and reverses its decision or, at the very least, puts into place transitional arrangements for the next few years.?

Borough councillors decided they would stand firm to their commitment, in the short-term, to provide homes for those in need.

Cllr Margaret Garton said: ?At a time when the Government is telling us to forward plan, they give us just a few weeks? notice that they are stopping the funding.

?The council is deeply concerned about meeting the housing needs of local people. We are writing to local ministers to request a ?phasing-in? period of the new system, or

preferably for the abolition of the grant not to start until April 1, 2004, to give councils time to prepare financially for the new arrangements.?

West Devon housing services manager Marion Playle said the council?s housing need survey carried out in October 2000, revealed the need to provide an additional 363 affordable homes in the borough per year for the next five years.

?At current funding levels we are only delivering approximately forty homes per annum, far less than are actually needed.

?The withdrawal of this grant severely restricts our ability to maintain delivery even at these levels,? she said.

West Devon and Torridge MP, John Burnett, said: ?This is another blow for us in West Devon from this Government. This represents another compelling illustration of this Government?s complete failure to recognise affordable housing needs in rural areas.?

Mr Burnett said he had raised the issue in the House of Commons earlier this month and was also hoping to arrange a debate on the subject.

The news is a setback for those searching for affordable homes in West Devon. The South West already suffers from an acute lack of affordable housing. It now takes almost six times the average salary to afford an average house in the region.