26 October 2007
Housing providers in the North and East Midlands have reacted angrily after again losing out in the Comprehensive Spending Review.
Just 16% of £10.2bn allocated to English councils and registered social landlords for new housing and other capital schemes during 2008/11 is going to the three northern regions.
The Northeast gained the lowest individual allocation (£283m) while the Northwest's £801m represents an increase of only 16%.
More than a third of the total (£3.97bn) went to London while the Southeast received £1.37bn – an increase of 30%. Southwest England's allocation rose by 50% to £789m, while a similar sum went to the East of England.
Charlotte Howse, director of policy at the Northern Housing Consortium, said northern regions had fared badly for a second CSR because the government's formula is weighted towards new affordable housing. 'We are trying to tackle some big structural issues, including transformational change and market renewal,' she said.
Regional allocations, announced by the Department for Communities and Local Government last week, are meant to cover improvements to social housing and regeneration. But about four-fifths will be spent on new homes – mostly in Southeast England.
A further £1bn was promised to nine housing market renewal pathfinders, seven of which are in the North. But Howse pointed out that about a third of all social housing is in northern regions and much of it requires significant investment.
There was also anger in the East Midlands, which was allocated £790m (up 18%). Andrew Pritchard, director of planning and housing at the East Midlands Regional Assembly, said it was seeking clarification from the DCLG over the figures.
The region includes Northamptonshire, part of the major growth area around Milton Keynes, along with six identified growth points. 'We are disappointed that we have not received the same sort of sums as other regions,' he said.
A DCLG spokesman said allocations are based on 'a region's need' as assessed by a range of key indicators, including overcrowding, affordability and deprivation.
PFoct2007
