COUNCIL house rents for Burnley's 5,600 tenants will rise by 5.2 per cent from April 1 - but the vast majority of householders won't be paying most or any of the increase.

Councillors heard that nearly 70 per cent of tenants receive housing benefit and their rents are subsidised by the Government.

Town hall bosses say the increase is necessary to fill a near £500,000 gap in the housing budget.

They have also raided bank balances to the tune of £420,000 and found £250,000 savings to make the books balance for the coming 12 months.

The rise means average rents will go up £2.08p, taking weekly rents to an average £41.68p.

Labour leaders say the increase is needed to secure funding for the proposed £75 million "sell off" of the entire council stock to a newly-formed local housing company.

But at the town council meeting last night Liberal Democrat leader Gordon Birtwistle said he could not agree to the rise because it was twice the rate of inflation.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.