星空传媒

Two english regions that missed out in the government鈥檚 2003 Communities Plan are set to see their funding soar as part of a two-pronged government shake-up of housing financing.

The South-west and East of England are in line for 43% and 52% funding increases respectively if proposals outlined in an ODPM consultation paper released on Tuesday are approved 鈥淧rescott鈥檚 new plan鈥�.

This would see allocations rise by 拢59m to 拢196m each year by 2007/8 in the South-west and from 拢167m to 拢255m in the East of England over the same period.

But as a result of this rebalancing act by John Prescott鈥檚 department, the three northern regions would lose out, with funding frozen for the North-west and North-east and increasing by only 8% in Yorkshire and Humber.

Sharon Hedges, acting head of South region for the National Housing Federation, said: 鈥淥ur members have worked hard to create a 50% increase in the delivery of affordable homes scheduled for the next two years, and with this money we should be able to do even more.鈥�

Nick Abbey, chief executive of Hereward Housing and chairman of the East of England region of the NHF, said: 鈥淚 think there is a significant change because they are including the areas designated for growth [in the figures].

鈥淎s housing associations in the East of England, we would welcome that. Because affordable housing has been provided at about half the rate we need, we were ideally looking for a doubling of the funding.鈥�

In a second consultation paper, published as part of last Thursday鈥檚 pre-budget report by chancellor Gordon Brown, the annual 拢2.5bn regional housing funding that is split between the nine regions would be combined with funds for transport and economic development to make a 拢14.7bn 鈥渟uper-regional pot鈥�.

The Treasury鈥檚 aim is to encourage regions to produce strategic plans and allow the chancellor to announce 鈥渋ndicative鈥� funding plans for the next five years.

Jim Coulter, chief executive of the NHF, welcomed the prospect of five-year spending plans. 鈥淓ven if much of the available funds were going to be ploughed into transport infrastructure for a while, people would have time to plan for the impact this would have on housing funding.鈥�