26 September 2003
Local authorities are facing a major struggle to preserve housing investment programmes as new regional boards look to switch maximum funds to a single pot.
Although most boards have yet to publish exact allocations for 2004/05, a preliminary study of their regional strategies suggests most plan to start moving money between councils and registered social landlords as soon as possible.
At present, local authorities receive housing investment programme (HIP) allocations from the government, while RSLs are allocated funds by the Housing Corporation.
A single pot, from which both councils and RSLs will bid for money, comes into operation in each region from April. During the first year, councils are guaranteed 70% of their current HIP allocation.
According to the Chartered Institute of Housing, which is examining the boards' strategies for the Office of the Deputy Prime Minister, most will not offer much additional protection.
Sarah Davis, a policy officer at the CIH, said boards want to avoid major disturbances to local authority plans while starting to tackle housing needs at regional level. 'The whole point of having a regional strategy is to look beyond local administrative boundaries.'
East Midlands proposed an across-the-board reduction to 75% – unless councils could show they would not meet the decent homes target. After initially suggesting Derby would receive a 100% allocation next year, the board held discussions with the ODPM and changed its mind.
Jonathan Geall, community and housing strategy manager at Derby, said: 'We were surprised to learn that discussions were going on between the regional board and the ODPM and are very disappointed that the board's original view did not prevail.'
A board spokesman said it had to balance competing priorities and further analysis had shown Derby did not merit different treatment to other councils.
According to the CIH, Yorkshire and Humberside is going further than most boards and offering councils 95% of their current HIP allocation – but only for one year.
David Thompson, housing consultant at the Local Government Association, agreed most boards were moving away from historic patterns of funding. 'They have been given a fresh mandate to rethink spending on a regional scale,' he added.
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