Manchester City Council is to review its housing revenue account (HRA) after it was revealed Whitehall-imposed rent cuts could send it into deficit.

The council's deputy leader, Cllr Bernard Priest, said the local authority needed to ‘undergo a fundamental review and appraisal of the HRA in the coming months to make sure it is viable in the long-term' after chancellor George Osborne's announcement that social rents would be cut by 1% over the next four years.