WINCHESTER councillors have clashed over the impact of controversial new housing laws.

Senior Liberal Democrats ramped up their broadside on the Government's Housing Bill, branding it an "outrageous attack" which would end social housing in the district.

They angered the Conservative administration and some within their own ranks by opposing a local budget adapting to the changes.

The bill, set to be approved in parliament later this year, is expected to force councils to sell their most expensive properties to fund the right for housing association tenants to buy their homes.

And social tenants will receive a rent cut of 1 per cent, further hitting council coffers.

Many Conservatives are privately dismayed at the bill but defended the council's attempts to adapt.

Cllr Caroline Horrill, portfolio holder for housing, admitted the council was "dealing with the unknown" but was applauded by her party for an impassioned speech defending housing officers.

"I can assure you that we are doing an outstanding job managing the houses that we're committed to and the plan that we committed to many years ago," she told full council. "We will not let our tenants down.

"It is a moment of change but we are absolutely going to the nth degree to try and ensure that the basics that our tenants ask us for are delivered."

The district's Conservative MPs, Steve Brine and George Hollingbery, both support the legislation.

Four Lib Dems, including group leader Cllr Lucille Thompson, voted against the council's housing budget.

Cllr Jane Rutter said: "I have huge respect for Caroline and indeed for the rest of the cabinet, and all of the Conservatives who are trying desperately, floundering around trying to make something out of this outrageous attack on social housing policy from the government.

"I'm afraid that Caroline has been trying to defend the completely indefensible. The daylight robbery of our council houses, our high value council houses, to subsidise this crazy ideological obsession with the right to buy for housing associations, is totally undermining our attempts to provide decent council homes for our local people.

"The effect will be to effectively wipe out social housing in this country."

But the Conservatives branded their rivals "irresponsible" for opposing a legally required budget.

Deputy leader Cllr Victoria Weston said: "This is not about the big politics - this is about what we're going to do for our tenants and our council houses and make sure they can remain and they have decent homes to live in."

Cllr Richard Izard, one of three Lib Dems to vote with the Conservatives, objected to his leader's use of the word "we" in opposing the budget.

"It doesn't speak for the group," he told the Chronicle after the meeting. "Sorry."

Seven Lib Dems and Labour's two councillors abstained.

Labour group leader Janet Berry said: "I think it's extremely difficult to make any reasoned decision about the finances of the housing revenue account or the budget, and certainly not the 30-year business plan which councils are supposed to have as a responsible stock retaining council."

Later, senior Lib Dem councillor Martin Tod tabled a motion to adopt the "toughest possible policies" on affordable housing, closing loopholes exploited by construction firms.

"We mustn't be seen as a soft touch by developers and major landowners," Cllr Tod said, claiming neighbouring councils were engaged in an "arms race" to adopt tougher measures.

A report on the issue is set to be prepared for the council's cabinet, which takes final decisions.