IT'S Halton Council's biggest step since splitting from Cheshire County Council.

It wants people to vote 'yes' this autumn to transferring council houses to a housing association.

The council says its budgets for routine repairs and long-term investment are getting squeezed tighter every year.

Council homes need £141m spending on them over the next 10 years - and Government rules mean the council can't borrow the money.

Already the boilers are wearing out and old windows are being replaced individually as they can't all be done at once. Even though council rents raise more money than is spent on council homes in Halton, £3.5m a year is siphoned off to a central Government housing fund.

If the postal vote is 'yes', the homes would be run by Halton Housing Trust, a newly formed, not for profit housing association with a board made up of tenants, councillors and experts such as lawyers.

It could borrow the money for long-term repairs and keep all the rent to spend purely on Halton's homes.

The transfer would take place in June 2005.

"Although we are saying we consider the association is the best way forward, it's still up to the tenants to make that decision," said Paul Mullins, operational director for housing.

He added all 200 jobs in the council house department would be transferred.

Two thirds of the council's 6,900 houses are in Widnes and one third are in Runcorn.