Government proposals to cut council house rents will lead to East Devon council losing out on seven million pounds over the next four years.
The council is asking for a meeting with two local MPs to discuss the problem.
The one per cent rent reduction was announced in the Budget in June and east Devon council says while it's good news for tenants, the loss of income will hit the budget for maintaining the properties and providing new ones.
The council says the government has also moved the goalposts after requiring it to take out debts of more than 84 million pounds in 2012 - based on an assessment of its income over 30 years.
With part of that income now set to be lost under the rent policy, the council wants to raise the issue with MPs Hugo Swire and Neil Parish in the next few weeks.
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