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   John Healey on the future of council housing finance - Exclusive
Housing Minister John Healey has described his plans to reform council housing finance as a 'once in a generation opportunity' for local authorities. In an exclusive interview with 24dash.com, Mr Healey said it was 'unlikely' councils would ever get a better deal and urged local government bosses to take a 'serious look' at the proposals during the consultation period. Under the new self-financing system, local authorities would keep all the rent they collect from their homes and all the receipts from any sales of houses or land. He confirmed not a single penny would go to Whitehall and not a single penny would subsidise other councils as the current system dictates. In return, however, councils would have to accept a share of an additional £3.65bn debt but he said none would be expected to take on a level of debt that is not sustainable for the long term. Mr Healey said: "I want to liberate councils like never before but the ball is currently in their court. I think once councils take a serious look at what's on offer they will agree that this is a big devolution of control from central to local government. "We've been working very closely with the Local Government Association on the reforms and I honestly don't think there's likely to be a better offer. "The deal will release at least ten per cent more money in every council for maintaining and managing their homes. "And it will create the funding capacity to build over 10,000 new council homes a year. Above all it will mean four million tenants living in 1.8 million homes will get better homes and better housing services from their council." Mr Healey said he was hopeful that the majority of councils would back the Housing Revenue Account (HRA) proposals. "Of course we can't just write off completely the £17 to £19 billion-worth of historic debt, but I honestly believe we have come up with a new system that is fair to all." Mr Healey rounded on the Conservative Party for its lack of a clear policy on council housing. "I don't want to escalate this into a political row but there has been silence from the Tories not only on the HRA but on new homes funding in general and any specific commitment to building council homes. We have backed up our words with action, using the Building Britain's Future policy platform to inject millions into public house building." Mr Healey also praised the work of the Tenant Services Authority. The new social housing regulator faces the axe if the Conservatives win the upcoming general election. "I think the TSA has already shown the value of an independent regulator in the way it has helped to underpin lending confidence in the sector. When you look at its original remit, I would say the TSA has already gone a long way to achieving what it was set up to do. "The TSA has certainly not got an easy job but it has started well, the new standards are well judged and should go a long way to improving the hand of tenants. For the first time ever they have some ground rules on what they can expect from their landlords and that can only be a good thing." There was also some reassuring words for ALMOs at a time when their long-term future has been under scrutiny following the decision of some councils to take back control of their housing stock or consider plans to dispose of it altogether. Mr Healey said: "As far as I'm concerned, ALMOs definitely have a future. As far I can see they have been nothing but local success stories especially when you speak directly to the people they serve. "Of course it is up to individual authorities to decide the best way to manage their housing services, but ALMOs have led the way on tenant involvement and long may they continue. Certainly I see them as integral to the way council housing services are delivered in the future." Meanwhile, John Healey today announced that councils will get a share of a £146million funding pot to plan and deliver new homes. The Housing and Planning Delivery Grant (HPDG) provides a direct incentive for councils to work with partners in the public and private sector to ensure that new homes are built where they are needed. It is an additional top up to mainstream funding and councils can choose how to spend it locally. The grant backs the commitment set out by the Government to build more social homes including an extra £1.5 billion towards building a total of 110,000 new affordable homes over the next two years. Last year councils received £135 million to help them build new homes where families need them. The actual amount councils receive is based on the number of new homes provided and meeting a number of planning requirements such as having at least five years worth of suitable sites ready for housing and a further ten years worth for future development. John Healey said: "The need for more homes remains despite the recession, and we are determined to see more homes built to help improve affordability - particularly for first-time buyers, reduce pressure on waiting lists and address over-crowding. "While many councils are playing their proper planning role, some are failing to identify land for the homes their communities need. Ensuring land is available for housing is vital to help secure both house building and economic recovery. "A shortage of new houses pushes up house prices, council waiting lists and private sector. This incentive will also ensure that all councils are taking action now and will give the housebuilding industry greater certainty and confidence in the economic recovery." Source: 24dash.com Due to problems with spam only SalfordOnline members can now leave comments. Becoming a member of SalfordOnline only takes a minute, just hit the red Join Us button at the top right hand side of the page to create your Personal account. Got a news story? Need help with publicity for an event in Salford? Send it to newsdesk@salfordonline.com or call the SalfordOnline newsdesk on 0161 789 5377. |
