THE Government has given a council approval for a multi-million pound boost to its tenants on the same day a union raised doubts about the scheme.

Housing Minister Sally Keeble named Redcar and Cleveland Borough Council among 27 authorities to move forward with a large-scale voluntary transfer proposal - subject to tenants' approval in a ballot later this summer.

The transfer will involve an organisation being set up which can access millions of pounds for repairs to the 12,000 council homes in the area.

But Mike Hill, regional officer for Unison, said evidence from the Midlands suggests that rent rises of up to 56 per cent have occurred after a five-year period of guaranteed rent levels.

He said: "Given these issues, it is extremely important that tenants are fully consulted on any proposals and balloted over the future of housing stock management in Redcar and Cleveland.

"Such things as immediate cash injections and rent freezes might seem attractive in the short term, but what lies ahead might not be so appealing, and in most situations the council could do very little to help."

His comments were dismissed as a scare story by Eric Barton, from the council's housing transfer team.

He said the council was working within government guidelines, which suggested there would be only a 2.5 per cent rise above the rate of inflation in rents over the next five years. Anyone with queries can ring 0800 1697503.