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Tories forced to climb down over housing ‘stealth tax’

THE Lords rejected the Tories’ so-called “pay to stay” policy in their damaging Housing Bill yesterday — slammed by a Labour peer as a “stealth tax” on council housing tenants.

The Labour-led amendment to make it only voluntary for councils to enforce the scheme was voted in 240 to 176.

Under the legislation, households with a total annual pre-tax income of £30,000 outside London or £40,000 in the capital would have to pay hundreds more a month to councils which would then pass the cash on to the Treasury.

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