12 November 2004
Local authorities can overcome cuts in funding for vulnerable people by persuading providers of support services to accept smaller surpluses, housing professionals have been told.
Gregory Roberts, manager for Supporting People and homelessness strategy at Westminster City Council, said that providers working for the London authority had accepted they would need to absorb part of an expected 5% budget cut during the next three years.
The Office of the Deputy Prime Minister announced two months ago that overall funding for the Supporting People programme will be cut from £1.8bn to £1.7bn by 2007/08.
Speaking at a CIPFA housing finance seminar on November 5, Roberts said Westminster was focusing on its six largest providers because they had the greatest opportunity to manage cuts through economies of scale.
'If you mutually point out to them that some of the surpluses they make are unreasonable, then that's the way to make savings,' he said.
Later, Stephen Hughes, director of resources at Birmingham City Council, said local authorities had the opportunity to meet shortfalls in funding for the decent homes target through demolitions, asset sales and prudential borrowing.
But he criticised pooling arrangements under which 75% of the money from sales under the Right to Buy scheme is paid into a national pot.
'Pooling is a con trick,' said Hughes. 'Local authorities everywhere are subsidising registered social landlords. [The government] is taking money away from councils to pay for the growth areas.'
PFnov2004
