THE Government has said it will consider giving Redbridge Council a £39 million housing grant for repairs on its dilapidated council houses, despite worries from a lobby group that the cash would never be handed over.

Fears were raised by the London Councils group, a coalition of local authorities in the capital, over Whitehall plans to spend housing cash earmarked for maintenance on exisiting homes for building new properties altogther.

The worries came following the borough missing out on a £39 million boost in June when Redbridge Homes - the body that manages the council's housing stock - failed to get two stars in an inspection by the Audit Commission.

But a council spokeswoman said: "In his letter, the Minister says that the money will still be forthcoming in 2011/12 and is still dependant on Redbridge Homes achieving a two star rating from the Audit Commission.

"Redbridge Homes and the council are already working hard on this and we’re confident we will achieve two stars at the next inspection.

"We will be meeting with Government officials to discuss the spending plan for Redbridge Homes and to get reassurance on exactly when the money will be available. This decision does not affect the repairs service our tenants receive."