THE building of much-needed affordable homes in North Wiltshire could face major cut-backs because of a new Government funding regime, says council leader Ruth Coleman.

Currently North Wiltshire builds about 100 affordable homes for local people every year - but this could be cut drastically to around 20 new homes a year.

Coun Coleman is at the forefront of a campaign by local authorities to ask the Government to reconsider its plans. "The new system is slower and more complex," she said.

"The Government wants the money to go to places like Milton Keynes and the Thames Gateway, as well as the North East. But these places need economic development. They want jobs, not houses."

Under the previous system, the district council pays for the building of affordable homes as and when it can, and then applies to the Government for a Local Authority Social Housing Grant, which reimburses the district council so they can spend the money again on a different project.

The new system will see money allocated on a regional basis, with the Government deciding how much goes where on the basis of need.

Coun Coleman feared North Wiltshire would be a loser under the new regime, which is likely to be less flexible.

At a meeting of the Local Government Association in Harrogate last week, Coun Coleman won overwhelming support for a motion she proposed to ensure that local authorities could continue to plan the delivery of affordable housing schemes and for funding to be secured at an early stage of the development process.

She warned that in many areas people on low incomes would have less chance of gaining homes they could afford as a result of the changes to Government housing grants.

Now the association will be negotiating with the Government about the future of its housing support.

"We need to be able to plan ahead with housing developers, and to be sure of getting funding, otherwise it takes the security and confidence out of future planning," said Coun Coleman.