A CASH windfall of £2 million has been handed to Redditch Council to spend on improving its housing stock across the town.

The extra Government money means a five-year, £38 million project - which is already 12 months ahead of schedule - could now be completed inside four years.

At a full council meeting on Monday night, members were informed by Borough Director Chris Smith the surprise grant was a result of a change to housing subsidy allocation.

"I am amazed we have benefited by such an extent. It's exceptionally good news," he said.

A working party will look at how best to spend the windfall and will investigate several options to benefit the whole town.

Conservative Councillor Pat Wilson welcomed the news and called for the money to be spent quickly before it had to be "handed back again".

But Liberal Democrat Councillor John Stanley urged members to be cautious as he feared they could end up with the situation in reverse if there were further changes to the housing subsidy allocation.

Conservative Councillor Brandon Clayton branded the extra money a "sweetener" before the election.

After the meeting, Labour group leader Councillor David Cartwright said: "The working party will meet to decide how the money is to be spent. We will argue windows which have not been replaced in Lodge Park and Greenlands are done in addition to Matchborough and Winyates."

At a council meeting last month, a £1 million project to replace hundreds of windows and doors was scrapped in favour of another scheme costing almost £350,000 less.

But plans to alter the work schedule for Lodge Park, Greenlands and Batchley prompted angry residents to launch a petition.

Also at Monday's meeting, it was agreed council housing rent be increased by 3.4 per cent.