Cashback for angry leaseholders

Norwich councillors are to agree £60,000 compensation

Leaseholders overcharged for a maintenance contract are to receive compensation from a city council that negotiated the controversial deal.

Norwich councillors are proposing to set aside £60,000 to compensate 2,000 tenants living in flats and maisonettes formerly owned by the city.

The contract with builders Citycare is also being reviewed after the row.

Leaseholders' Forum chairman Pauline Walton said: "We're delighted but would like Citycare to contribute as well."

Compensation bill

Citycare, which had an exclusive deal to carry out repairs and maintenance in former council owned properties, had to renegotiate their contract after being accused of overcharging for work.

Norwich City Council, joint shareholders of Citycare with an Anglian Water subsidiary, are to foot the compensation bill of £60,000.

The Norwich Leaseholders' Forum, which was concerned about overcharging by Citycare, had demanded £120,000 in compensation.

Chairman Pauline Walton said: ""Getting the £60,000 compensation is not going to go a long way but it is a gesture to make people feel better."

Councillor Hereward Cook, responsible for Norwich housing, said: "The issue will be dealt with on a case by case basis as it's not a blanket figure.

"The money will be found and it would be nice if Citycare also put something in the kitty as the trouble started with them,"

Norwich City Council were due to resolve the issue at their meeting on Wednesday.