COUNCIL chiefs have taken a 'major step' by agreeing to set up two housing companies to 'offset the austerity measures inflicted' on the authority.

Executive board members approved plans to establish the companies to 'maximise' income and deliver 500 'high-quality' homes of mixed tenure at their Town Hall meeting on Monday.

The council is aiming to meet the borough's housing needs, as well as to find new ways of creating income following cuts in Government funding.

The firms could be formed in May this year, with 154 properties expected to be built and occupied by April 2020.

It is planned that the 500 properties will be made up of 347 new-build homes and 153 that will be acquired for refurbishment.

The companies will be limited by shares, wholly owned by the council, while the option of applying for registration as a provider of social housing with the Homes and Communities Agency will be evaluated in due course.

It is proposed that, initially, the organisations would not directly employ its own workforce.

In the short term, it is likely that consultancy resource will be required to support the start-up and initial operational phase, which will be funded by the companies.

Deputy council leader Cllr Russ Bowden, executive board member for corporate finance, said he believes 'it is really important' that the authority 'takes a lead in terms of housing development and the provision of homes in Warrington'.

He added: "The intent is for these to be important vehicles for delivering housing here in Warrington."

Council leader Cllr Terry O'Neill hit out at the Government amid the authority's budget cuts.

He said: "This is a major step for this local authority.

"We are ensuring that we have the correct housing mix for our communities in this town.

"It is essential that we do this.

"The other side of it is that it offsets the austerity inflicted on us by this damn Government.

"We have to be smart enough to offset the austerity measures.

"One of the main aims is this offsets the drastic cuts that this council is having to make because of this Government – and we will continue to do that and do our best to protect the most vulnerable in this town."

The executive board unanimously approved the establishment of the two companies based on the business case.