Labour's leadership suffered a fourth conference defeat as delegates called for fairer funding for council houses.

The vote, in the dying moments of the conference, came despite a plea from Local Government Minister David Miliband. He warned public borrowing was limited because the Government could not take risks with the economy.

Campaigners for direct investment in council homes were jubilant after Labour delegates voted overwhelmingly in their support.

Members of Defend Council Housing in Brighton and Hove said the result was a major boost for their campaign to keep the city's social housing in council ownership.

The conference floor debated whether or not the Government should invest in council homes or whether the best way to secure money needed for refurbishment was by handing the stock over to housing associations or private companies.

Delegates voted, for the second year in a row, in favour of a motion calling on the Government to change the rules and put local authorities on a "level playing field" - ensuring the funds it was making available for stock transfers were also made available for councils who wanted to keep their homes.

September 30 2005