CHESHIRE West and Chester Council agreed to sacrifice its right to veto constitutional changes to ease the way for a housing trust merger in a behind-closed doors deal.

The council voted to give up its so-called ‘golden share’ in Cosmopolitan subsidiary Chester and District Housing Trust in a bid to help a rescue merger with the Sanctuary Group, which has now gone through, although the debate was in private and the outcome was not minuted but emerged later.

The council inherited its preferential voting rights when the homes transferred from the local authority to CDHT in 2000.

Council leader Mike Jones said: “This was a momentous decision taken with support amongst councillors of all parties, designed to maintain a mutual commitment to delivering excellence for residents in Chester.”

Opposition Labour leader Justin Madders said: “The council’s decision was a very difficult one to arrive at but we did so only after being satisfied that tenants would be protected. The retention of the residents’ board was a key commitment from Sanctuary that persuaded us to support the merger.

“The potential alternatives to the merger could have had significant negative repercussions for tenants and I am pleased that this decision has helped secure the future for the existing tenants.”

Cosmopolitan Housing Group (CHG) became part of Sanctuary Group on March 27. CHG owns and manages around 13,500 homes across Merseyside, Cheshire and the North West.

The move, which is fully supported by the Homes & Communities Agency (HCA) – the social housing regulator will see CHG and Chester & District Housing Trust (CDHT) become separate subsidiaries under the Sanctuary Group umbrella.