CLG saving £12 million for pathfinders

In a letter sent to pathfinder leaders last Friday, officials at the Communities and Local Government department said there would be no cuts to their growth funding.

The department has also given more details on how it will implement a £50 million cut to housing market renewal funding, which was announced last month.

As part of a consultation on the cuts, the CLG has suggested each pathfinder will lose 16 per cent from its HMR budget.

Alistair Graham, director of the Oldham Rochdale pathfinder, said: ‘It is a relief to know that no more funding will be cut, but we desperately need to know what our allocation is.

‘We are trying to avoid entering into any new commitments ever since they first told us about the £50 million cut.’

Mr Graham said losing 16 per cent from the HMR budget would mean that his pathfinder would have to reduce its spending on new acquisitions and slow the speed of the works it is carrying out.

Jim Johnsone, director of Tees Valley Living, said he hoped the government’s commitment to the growth funding would continue long term. It is due to receive £2.5 million this year.

Sheila Tolley, interim director of Bridging Newcastle Gateshead, said its £1.7 million of growth funding would help it ‘deliver a programme which supports the development of sustainable new homes’.

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