A front-runner in the race to set up arm鈥檚-length management has suffered a blow after it received a one-star rating from the Housing Inspectorate.
Kirklees council had a provisional 拢62.5m extra subsidy allocation as one of only eight councils in the first round of the government competition. Its tenants backed the arm鈥檚-length option last month with an 80 per cent 鈥測es鈥 vote.

But an inspection of five service areas 鈥 allocations, rent arrears, caretaking, business support and consultation, and access to services, produced only a 鈥渇air鈥 rating. The repairs service got two stars last year.

To unlock half the extra subsidy, Kirklees will have to increase its rating by one star, and to get it all, reach three stars. The inspectorate鈥檚 鈥渨ill definitely improve鈥 verdict will boost hopes.

Business manager Andy Selman said: 鈥淭his is the first time for me in 20 years of working in housing that we can deliver rather than having to say 鈥榥o鈥 all the time. This is incentive enough to get our inspection score up to unlock the extra arm鈥檚-length resources.鈥

Cabinet member for housing Graham Simpson said: 鈥淚nspections can be a useful tool in focusing on areas that need improvement. They help those of us inside the service to see where we actually are.

鈥淥n the negative side, they take up time and resources that could be used directly on improving service delivery 鈥 they are only a snapshot of the service. Other things slip while attention is directed to identifying weak points.鈥

鈥 Leeds council is to consult tenants on a move to arm鈥檚-length management.

It is proposing six arm鈥檚-length companies to manage the council鈥檚 70,000 homes, which will be split into geographical areas. Consultation events will take place across the city next month.