13 January 2006
Local authorities in the North of England have reacted angrily following a government retreat over the way money is allocated for council housing.
Councils in the North expected a major reallocation of housing management and maintenance allowances to be completed by April.
But following pressure from councils in London and the South, a protection period that began in 2003/04 is being extended for two years. This means that councils in the North will not see all their expected gains until at least 2008.
Under the old system of allocating allowances, partly based on the number of high-rise flats, many southern authorities received far more than those in the North.
Richard Bramley, finance adviser to the Northern Housing Consortium, said northern councils were still receiving more than they did three years ago, but not the sums promised. 'The government didn't have enough money to bale out the southern authorities, so it had to take it off those in the North,' he said.
Sheffield will be £900,000 worse off next year. Phil Taylor, director of resources in the city council's neighbourhoods department, criticised the government for making a late change to the allocations without consultation. 'It's in danger of simply recycling money without achieving the ends it desires,' he said.
According to the consortium, all councils will have increases of at least 5% next year – some London authorities had been worried that their allowances would be frozen.
Stephen Cowan, chair of the Association of London Government's housing steering group, said he was pleased the government had taken its concerns on board.
Among the councils that would have been worst hit were some with arm's-length management organisations. Gwyneth Taylor, policy adviser to the National Federation of Almos, said: 'A small number of London Almos would have been in an unsustainable position.'
A spokesman for the Office of the Deputy Prime Minister said it had to ensure the continued viability of London authorities while long-term changes were made to the allowance system.
PFjan2006
