25 June 2004
Almos disappointed as Balls backs borrowing curb
Hopes that council-owned housing companies might be able to borrow money privately in the same way as registered social landlords have been dashed by a key government adviser.
Ed Balls, chief economic adviser to the Treasury, told the Chartered Institute of Housing annual conference in Harrogate last week that arm's-length management organisations could not be given extended borrowing powers because their spending must be accounted for on the public sector balance sheet.
Almos have been locked in discussions over borrowing with the Office of the Deputy Prime Minister for nearly two years. A consultation paper that had been promised last year has still to appear.
At present, Almos can borrow a set sum once they gain a minimum of two stars from housing inspectors, but many want to borrow more to fund new developments and make Almos more attractive to tenants.
Gwyneth Taylor, policy officer at the National Federation of Almos, said housing minister Keith Hill had told the federation two months ago that Almos would remain subject to the public sector borrowing requirement (PSBR).
But the federation is still hopeful that three-star Almos might be allowed to pull out of the housing subsidy system and receive greater flexibility over the use of right-to-buy receipts.
'There is still some potential freedom on the table,' said Taylor. 'The government has said it was not prepared to consider it, but it hasn't said what it is willing to look at.'
Balls delighted delegates at the CIH conference by suggesting that housing should fare better in the forthcoming Spending Review than many have been predicting.
'There will not only be a good settlement for housing and housing capital but we will stick to it and sustain it until 2008,' he said.
ODPM proposes advisory unit for merged boards
A national unit could be set up to advise newly merged regional housing and planning boards.
Neil McDonald, director of housing at the Office of the Deputy Prime Minister, said boards will come under the remit of regional assemblies – even where there is no directly elected assembly.
But although the ODPM has accepted a recommendation in the Barker housing review that regional housing and planning boards should be merged, it has not agreed to a further Barker proposal that a planning executive should be established in each region to offer support.
McDonald told the conference that a single national advice unit would ensure consistency and be well placed to deal with cross-regional issues, including migration.
Regional housing boards were set up just over a year ago in the wake of the Sustainable Communities plan and recommend funding allocations for councils and housing associations.
A consultation paper on the changes is expected next month.
Merron Simpson, the head of policy at the CIH, said that it was vital regional assemblies retain some distinction between housing and planning to avoid the 'sapling' housing boards being swallowed up.
Councils 'must raise funds' from transfers, Almos or the PFI
A fourth option for bringing council homes up to standard is financially viable, MPs have told the government.
According to the House of Commons council housing group, £1.5bn in revenue and £0.55bn in capital is 'creamed off' from local authorities each year through the housing subsidy system and right to buy sales.
But speaking at the CIH conference, housing minister Keith Hill insisted that councils must use stock transfer, Almos or the Private Finance Initiative to achieve the decent homes target.
'The decent homes programme has challenged social landlords to look at their housing stock in a new way,' he said. 'It has placed tenants firmly at the heart of decision-making.'
Camden in London is among councils whose plans for Almos or transfer have been stymied by a tenants' revolt.
But Hill's boss, local government minister Nick Raynsford, continues to hold the line. 'If some people for political motives don't want to consider any option other than the retention of traditional municipal housing, that really isn't an intelligent choice, that's trying to resist change,' he insisted this week.
Residents are 'not opposed' to new homes
Homeowners in high-demand areas are not necessarily opposed to new house-building, says a new survey.
The study, Housing futures: informed public opinion carried out for the Joseph Rowntree Foundation and published just after the conference, found 40% believe that areas in Southeast England should be allowed to carry on growing, compared with 24% who are opposed.
Just 35% think more homes will mean a poorer quality of life, according to the survey of more than 1,400 residents in Aylesbury, Chatham, Gillingham and Maidenhead.
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