Almo councils take government to court over £150m fund clawback

22 Oct 09
Four councils with arm’s-length management organisations have turned to the courts to try to recover funds they were promised for decent homes work
By Neil Merrick

22 October 2009

Four councils with arm’s-length management organisations have turned to the courts to try to recover funds they were promised for decent homes work.

The authorities announced on October 16 that they were seeking a judicial review of the government’s decision to claw back £150m from its 2010/11 Almo programme.

The Almos were expecting to receive the money as soon as they gained two stars from Audit Commission inspectors. But the Department for Communities and Local Government removed the money in June to help fund £1.5bn worth of house building initiatives.

Paul Herbert, housing portfolio holder at Sedgemoor District Council in Somerset, said tenants had supported the creation of an Almo because they believed that it would lead to better homes.

‘We must try every avenue to retain funding for meeting minimum housing standards,’ he added.

The other councils involved in the judicial review are the London boroughs of Havering, Redbridge and Sutton. Although none of the four Almos have yet received two stars – the minimum to qualify for a DCLG grant – two have recently been inspected and expect to gain them soon.

Gary Porter, chair of the Local Government Association’s environment board, said it was possible that tenants could wait years for their homes to be improved.

‘Withdrawing funding at short notice and with almost immediate effect significantly damages Almos’ and councils’ ability to plan and deliver vital services,’ he added.

A further three councils that were affected by the DCLG’s decision – all Labour controlled – declined to back the judicial review.

Gwyneth Taylor, policy director at the National Federation of Almos, said they were working ‘behind the scenes’ rather than challenging the government head-on.

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