Salford council has torn up its plans for housing, admitting that it has not done well enough to qualify for government funding.
Salford council has decided not to put in a bid for round-four arm's-length management funding as it had planned.

Instead, it is returning to consultation on a mixed investment strategy and it is recruiting 24 staff to its housing strategy department.

Its decision followed a stock condition survey that found a gap of £350m over 10 years in the amount needed to meet the decent homes target, and an admission that New Prospect, Salford's arm's-length management organisation, was not yet good enough to qualify for funding.

There are no immediate plans to shut down New Prospect and it hopes to bid for ALMO funding in a fifth round if one is announced.

Former New Prospect chief executive, John Townsend, was asked to step down by the council earlier this year (HT 1 August, page 12).

His departure was seen as a chance to improve standards at the ALMO in time for round-two funding, but this attempt was abandoned in September.

Salford council's head of housing, Bob Osborne, said: "The pace of change has made it difficult to meet the targets. We are going to take our time and do this properly."

Meanwhile, Salford New Deal for Communities has reorganised its senior management team, advertised for 12 posts including a chief executive and drawn up new regeneration plans to take account of the market renewal initiative.