The Chartered Institute of Housing has used its keynote speech at its annual conference in Harrogate to call for more money for poorly performing councils to enable them to meet the decent homes standard
But industry figures have already warned that the scheme could be seen as a reward for failure.

Andrew Gray, outgoing president of the CIH – he will be replaced by Yvonne Leishman – told delegates: "We are arguing for a specific pot of money – as was given to hospitals recently – to help deliver transformational change, to offer an incentive to those local authorities with zero or one stars to improve."

Looking to head off criticism, he added: "Let's be clear, we are not asking for a get-out-of-jail card for poor performers or for those who have avoided taking tough decisions about their future."

He said his proposal was aimed at helping tenants who had rejected stock transfer, but whose local authority is not performing well enough to take advantage of arm's-length management.

Currently councils only have three options to secure extra funding – stock transfer, arm's-length management or the private finance initiative.

Only councils with two- or three-star ratings from the Audit Commission can be certain of accessing ALMO funding, and PFI is considered too complex for many to engage in.

Sarah Webb, policy director at the CIH, said details of the policy were not yet finalised, but that the CIH was launching the idea at the conference in order to influence the next Treasury public spending round, due to be finalised in 2004.

She said: "The analogy is the foundation hospital scheme, where the government is giving poorly performing health authorities £200m to improve themselves to get good enough to reach foundation hospital status."

Grants would be based on implementing Audit Commission suggestions for improvement.

A spokeswoman for the ODPM would not say whether or not it would consider the suggestion but said: "Our clear aim has been to end funding uncertainty for councils. The Communities Plan sets out the three options for extra funding clearly."

Richard Kemp, acting chair of the Local Government Association housing executive, said: "It's a bit naive. For a council like Hull, for example, extra money wouldn't mean the officers or members had the capacity to deliver. It could be seen as a reward for poor performance and doesn't look very well thought through."

In brief

Bigger RSL role on asylum
Registered social landlords should take a greater role in housing asylum seekers, says research published this week.

Between NASS and a Hard Place was commissioned by the Housing Associations Charitable Trust. It focuses on case studies in Yorkshire and Humberside.

  • The Chartered Institute of Housing has also published a study on asylum. It highlights the need to develop good practice.

    For the HACT report, see www.hact.org.uk. For the CIH study, visit www.cih.org

    More say for councils
    Councils do not have enough influence over what type of housing is developed, a new joint paper by the Chartered Institute of Housing and Royal Town Planning Institute has revealed. The paper said the local planning authorities should be allowed to specify in broad terms the type of housing required.

    NDC chief steps down
    The chief executive for Hyson Green and Radford New Deal for Communities has stepped down after a report by the Audit Commission found that, among other things, the NDC had failed to set up a register of assets.

    Pauline Davis will leave in September.

    Source

    Housing Today