29 November 2002
Early estimates suggest that Almo proposals from local authority housing departments next year could exceed £1.5bn – more than three times the sum allocated in the first two years.
Among the councils wishing to set up Almos is likely to be Sheffield, which withdrew from this year's large-scale voluntary transfer (LSVT) programme because it wished to raise money to meet the decent homes standard without losing control of its 64,000 properties.
Another council likely to put in a bid is Camden. But the north London borough has made it clear that it would prefer to have the same borrowing powers as a housing association.
In a letter to housing minister Lord Rooker, the council said it should be on the same financial footing as a registered social landlord after gaining 'three-star' ratings from inspectors for two major parts of its housing service.
Subsequently, in the Local Government Bill published this week, the government confirmed that councils will be given the freedom to borrow prudentially for housing and other services.
Michael Forrester, corporate director of housing at Leicester, said the city council was waiting to see whether it was necessary to make an Almo application. 'We will have to see what difference it makes and how much borrowing we could get,' he said.
Since 2001, 21 councils have been given the go-ahead to set up Almos – eight of which are up and running. Just £460m was allocated prior to this year's Spending Review. The sums available in future will not be known until Deputy Prime Minister John Prescott unveils his communities plan in January.
Gwyneth Taylor, housing programme manager at the Local Government Association, said there was an 'inherent tension' in the government's policy.
She said: 'It has always said that it wants to give freedom and flexibility to well-performing councils but it likes Almos and LSVT because it wants to split a council's strategic and management roles.'
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