Extra cash for negative-value stock transfers causes rethink at Brighton and Hove

Brighton and Hove council has been thrown into uproar by an ODPM announcement that extra funding will be provided to meet the decent homes standard.

An ODPM letter seen by Housing Today this week said more money would be available to fund negative value stock transfers.

Originally the funding, which allows transfers at councils with homes valued at less than the amount they require in investment, was capped at 拢180m. However, experts warned this was not enough and would put off potential bidders (HT 16 July 2004, page 8). The ODPM declined to reveal how much would be added to the fund.

Brighton and Hove council, which needs between 拢80m and 拢100m to plug its stock transfer funding gap, was due to submit an application for an arms-length management organisation today 鈥� the deadline for ALMO, PFI and stock transfers bids.

But after receiving the ODPM letter on 17 January, council leader Ken Bodfish decided to withdraw the bid on the advice of council lawyers.

He said: 鈥淩ather than rush this fundamental decision, we felt that in light of this clarity from the ODPM, consideration should be given to a stock transfer. Otherwise we could risk laying ourselves open to challenge from tenants.鈥�

The decision provoked uproar among councillors, who backed a vote of no confidence in Bodfish last Thursday.

Councillor Jack Hazelgrove, cabinet member for housing, and his deputy Kevin Allen have resigned, claiming no new information came to light that justified cancelling the bid.

Hazelgrove said: 鈥淭he ODPM letter merely confirmed information that councillors and tenants already knew. After two years of massive consultation it was agreed that an ALMO was the best option to improve and modernise houses.

鈥淭his comes down to a fundamental issue of democracy. Who should decide our future, elected councillors or non-elected bodies? This is highly unjust and perverse,鈥� he said.

But Sarah Webb, director of policy at the Chartered Institute of Housing, said: 鈥淔or any council with negative value stock, the increase in available money for stock transfer would definitely justify a rethink.鈥�

Source

Housing Today