05 November 2004
Deputy Prime Minister John Prescott has angered councils and trade unions by ruling out a review of how local authorities raise money to meet the decent homes target.
Defend Council Housing, which campaigns against stock transfers and arm's-length management organisations, claims Prescott has broken a promise he made at this year's Labour Party conference to look at other options.
But in a letter to Austin Mitchell, chair of the Commons council housing group, Prescott said the review had been conditional on a motion in favour of a 'fourth option' being withdrawn.
That motion, calling for councils to be able to borrow funds regardless of whether they go ahead with transfers, Almos or Private Finance Initiative schemes, was passed overwhelmingly – scuppering a deal struck the night before between ministers, local authority leaders and unions.
More than 300 delegates who attended Defend Council Housing's conference in London on October 29 signed an open letter to Prescott, claiming it was inconsistent of him to pledge a level playing field while ruling out direct public investment in council homes.
'We've proved that the fourth option is financially affordable,' said DCH spokesman Alan Walter. 'The government can't say they are in favour of choice in public services and deny tenants the right to choose.'
DCH wants councils to freeze stock option appraisals, due to be carried out by next year, in the hope that ministers concede an enquiry. But John Prescott is also writing to local authority housing directors, stressing that there will not be any government U-turn.
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