Let us borrow to build homes, demand councils

6 Nov 03
Local authorities have renewed their demand to borrow money to spend on housing without setting up arm's-length management organisations.

07 November 2003

Local authorities have renewed their demand to borrow money to spend on housing without setting up arm's-length management organisations.

Richard Kemp, vice-chair of housing at the Local Government Association, said too many councils were still being forced to transfer their stock to housing associations because the other options – an Almo or the Private Finance Initiative – were not feasible.

Speaking at the opening of the LGA's housing conference in Liverpool on November 5, Kemp called for councils that retain a traditional housing department to be allowed to borrow funds to meet the decent homes standard.

Both Almos and the PFI were expensive to set up, he said. 'They should be chosen for other reasons than the fact that they are the only source of finance available.'

The government ruled out any 'fourth way' for raising money at the launch of the sustainable communities plan earlier this year. Housing minister Keith Hill was expected to stress that councils must choose between the other three options when he addressed the conference on November 6.

But Kemp said: 'Traditional council housing and traditional support for council housing should be another option.'

Liverpool has already transferred about half of its 40,000 homes to housing associations under 11 different small-scale transfers but wants to borrow money to spend on the remaining stock.

A total of 125 MPs signed a House of Commons early-day motion calling for better funding for council housing and an end to privatisation. In September, MPs announced they were setting up a 'council housing' group to increase pressure on ministers.

PFnov2003

Did you enjoy this article?

AddToAny

Top