Almos angry after scheme is cut back

23 Jul 09
Council-owned housing companies have reacted angrily to the government’s decision to scale back its refurbishment programme to pay for more new homes.
By Neil Merrick

23 July 2009

Council-owned housing companies have reacted angrily to the government’s decision to scale back its refurbishment programme to pay for more new homes.

The 13 arm’s-length management organisations that have yet to achieve two stars from Audit Commission inspectors were told that funds for decent homes work would not be available until 2011/12 at the earliest.

This follows a decision by the Department for Communities and Local Government to reduce its 2010/11 decent homes budget by £150m. Although £609m is still available next year, most will go to Almos with two or more stars that are already bringing properties up to standard.

The DCLG switched a total of £570m from other budgets to pay for its latest £1.5bn building package, confirmed by housing minister John Healey on July 17. The remaining money came from other government departments.

According to Gwyneth Taylor, policy officer at the National Federation of Almos, whether Almos receive money in 2011/12 will depend on the next Comprehensive Spending Review. ‘It leaves the decent homes programme with significant gaps, particularly in the London area,’ she added.

Alison Inman, chair of Colchester Borough Homes and NFA chair, accused the government of making a ‘serious error of judgement’ days before Parliament went into recess – so denying MPs the opportunity to challenge ministers.
‘It is essential that we continue to maintain and improve existing stock as new build alone will never satisfy the need,’ she added.

Healey said the £1.5bn package would mean that housing associations and other developers could build a total of 110,000 affordable homes over the next two years. During the past month alone, 50 associations have received more than £300m for 5,100 homes.

Seventy local authorities have applied for funds from the government’s council house building fund, now increased from £100m to £350m. Ten authorities are to share £1.7bn through the Private Finance Initiative for schemes to build or refurbish about 6,000 homes.

The 11 housing market renewal pathfinders based in the Midlands and northern England are to receive a further £35m. All funds are being distributed by the Homes and Communities Agency, which has itself promised to make further efficiency savings.

‘We’re confident that we can find the funding needed this year from managed savings,’ said HCA chief executive Sir Bob Kerslake.

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