Council house rents in Northumberland will still rise by seven per cent despite £20 million of Government funding.
Northumberland County Council's Conservative administration said a council rent hike was necessary as it was the only way to provide the current levels of maintenance as well as future affordable homes.
But opposition councillors said the decision could no longer be justified after the local authority was given a £20m levelling up package for Blyth, with £18m being used to boost housing.