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The move will mean increased power for Yorkshire's existing network of subregional forums. It is being closely watched across the country as there are concerns that yet another tier is being added to local government bureaucracy.

Ruth Lucas, senior project officer for the Local Government Association, said the pattern of subregional forums feeding into the strategies and allocations policies of housing boards was being repeated up and down the country. She said housing boards would have to work hard to ensure local priorities were reflected: "Our concern is that this will eclipse local authorities, when the regional housing boards need to be working very closely with authorities."

But Tony Stacey, chief executive of South Yorkshire Housing Association and a member of the South Yorkshire subregional forum, was in favour of the proposals: "The significance of this is that everything is going to be commissioned by subregional forums. We've never had this role before, and we've got to gear ourselves to be a commissioning body."

The South Yorkshire subregional forum, until now made up mostly of local authority employees and restricted to occasional meetings, will employ full-time staff for the first time to prepare for its new role.

Of the 拢285m allocated to Yorkshire and Humber's regional housing pot for the next two years, 拢91m is available to spend at the regional housing board's discretion.

We鈥檝e never had this role before, and we鈥檝e got to gear ourselves to be a commissioning body

Tony Stacey, South Yorkshire forum

Of that, 拢12m has been set aside to go schemes proposed by the subregional housing forums.

As part of its regional allocation strategy, the regional housing board is also understood to be consulting on whether or not the four subregions should have a say in where the Housing Corporation spends its 拢129m programme in Yorkshire and Humberside.

To do this, the subregional forums would have to develop housing strategies. Stacey is looking to appoint a full-time partnership manager to oversee the process.

John Taylor, head of housing and local government at the Government Office for Yorkshire and the Humber, is responsible for the regional housing board's allocation strategy. He said: "We feel there are huge benefits to be obtained from a subregional approach to housing.