HCA restructures as corporate plan reveals financial challenge
Agency ‘very limited’ by fall in sales income and slashed budgets
The government’s regeneration agency has admitted its capacity to get involved in regeneration projects has been reduced by a large drop in sales receipts.
But Sir Bob Kerslake, chief executive of the Homes and Communities Agency, said there were unlikely to be any housing or regeneration schemes in the near future that proceed without links to the agency.
The formidable challenge facing the HCA is laid bare in its first corporate plan - the blueprint for its first two full financial years plus what remains of 2008/09.
Targets agreed with the government demand that it delivers 126,125 homes between 2009/10 and 2010/11, despite falling levels of funding. The budget for its national affordable housing programme peaked this year at £3.25 billion but will drop down to £2.48 billion in 2010.
Sir Bob said a decline in income from sales receipts had had a severe effect. ‘Our scope to do new things has been very limited,’ he added.
Despite the downturn the Treasury is expecting the HCA to rake in £149 million from development deals in 2009/10, and £184 million the following year. The agency’s predecessor, English Partnerships, saw its receipts drop from a peak of £376 million in 2006/07 to £32.9 million in the first eight months of 2008/09.
Sir Bob said more than 100 staff had moved from its central offices to the regions under a restructuring programme and that it was on track to reduce its offices from 24 to 16.
The HCA’s key budgets are expected to be slashed next year. Its total budget will drop from £5.6 billion in 2009/10 to £4.5 billion the next year.
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