Given that councils have waited years for reform of housing finance, it is a bit ironic that they now feel they are being forced into it.
But with a change of government likely, there seems to be a growing feeling among some authorities that if they don’t agree to the plans on the table now, they could be left out in the cold for even longer.
For some councils, the lack of money for refurbishing stock has become particularly pressing with elections looming. At a recent meeting in Westminster, one councillor said his authority would be fighting off the British National Party in the spring if they didn’t find some money soon.
This particular authority, which stands to gain one of the highest levels of redistributed debt under the current proposals, feels it has little option but to come on board despite its opposition to the plans.
Housing minister John Healey has suggested reforms could be pushed through before the general election if councils agree to share out £18 billion of housing debt, but primary legislation would be needed if there is no agreement.
With campaigners and local government umbrella bodies calling for the debt to be written off, and Mr Healey adamant that he wouldn’t get through the door of the Treasury with such a proposal, it remains to be seen who will back down first.
But it isn’t just on the local government side that cracks are starting to appear. One MP who met Mr Healey recently to discuss the review, says the minister is keenly aware of the ‘urgency’ of getting his reforms pushed through.
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