Southend is still sitting on a £32million goldmine - because the Government will not allow the borough to spend it.

The cash, which is lying idle in bank accounts, was mustered in the 1980s and 1990s through the sale of council houses.

The sales took place under the right-to-buy scheme of the former Prime Minister, Margaret Thatcher.

In 1997, the new Labour Government announced that it would be changing the law under which councils could spend only 25 per cent of the money received from sales, with the rest being retained to go towards paying off debts.

Instead, ministers promised to make the full amount available for councils to spend on providing extra housing.

However, the borough treasurer, David Andrews, said: "When they actually looked at the situation, they backed away from the idea."

He added: "Initially, they allowed us to have a further amount of borrowing and this money was used for the refurbishment of the town centre blocks around Queensway."

Southend Council Tory leader Howard Briggs said the authority did not have a formal policy on the issue.

He added: "My personal view is that cash obtained from the sale of council houses should be used to provide more social housing in the town."

When the Labour Government came to power in 1997, Mr Briggs said, his belief was that councils should have more freedom to act with housing money, particularly in areas such as Southend, where there was a shortage of housing.

He said: "I think we should be able to buy properties in the open market if the circumstances in an area justify doing it."

Published Friday, April 25, 2003

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