Labour leadership suffers conference defeat over council housing » Housing » 24dash.com

Labour's leadership suffered a defeat over demands to build more council housing, it was announced today.

Communities and Local Government Secretary Ruth Kelly pledged yesterday that the Government "can and will" build more homes, including council houses.

The party's ruling National Executive Committee opposed a motion calling for "direct investment to council housing as a matter of urgency".

But when the results of a card vote, taken at the conference yesterday, were announced today it emerged the motion had been carried by 65.65% to 34.35%.

It was the second year in succession that the leadership had been defeated on the issue of building more council homes.

Ministers are braced for a second likely defeat later today over the "damage" being done by the "breakneck speed of change" in the NHS and the outsourcing of services.

The rebel housing motion, moved by Gravesham Constituency Labour Party, demanded the Government pursue a "fourth option" of direct investment in council homes.

Its backers warned the Government could not break manifesto promises and still hope to get elected.

Ms Kelly insisted the Government was "listening" and added: "We have got to build more homes - more council homes as well as social housing."

She said ministers were examining how councils could build more council homes but had to be responsible with public finances.

Copyright Press Association 2006.