Shift in Labour policy may boost investment in council housing stock
‘Major breakthrough’ on fourth option
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Campaigners have claimed a major breakthrough after the housing minister opened the door for direct investment in council homes.
In a letter to the party’s housing working group, Caroline Flint agreed there should be a ‘level playing field’ between councils with and without arm’s-length management organisations. She indicated that ‘good’ councils would qualify for social housing grants in order to build new homes.
A spokesperson for Ms Flint said she was not sure if the change represented a ‘fourth or fifth option’ for investment in council stock but ‘what we want is to hit targets for 45,000 [new] social homes a year’.
The spokesperson said that she expected councils to start applying for social housing grants in 2009. She added: ‘[Councils] would use their assets and borrow in a not too dissimilar fashion to ALMOs.’ Meanwhile, the number of homes built ‘depended on the appetite’ of councils.
Daniel Zeichner, who sits on Labour’s housing working group, hailed ‘pressure from within the party’ for the switch.
Easington Council councillor David Taylor-Gooby – also on the working group – described the move as a ‘shift away from the euthanasia of council housing’.
Unison said the move marked the start of a ‘council house-building programme’. Alan Walter, chair of Defend Council Housing, said: ‘The letter is very important because it clarifies that the social housing grant is for council housing with secure tenancies and directly elected council landlords and also [there will be money for] decent homes.’
Housing Quality Network executive director Steve Partridge described the move as ‘significant’. He warned that councils would still be bound by public sector borrowing rules and the Treasury would be unlikely to sanction a spending spree.
Fourth option: a history
June 2004
‘I don’t know how many more times and in how may many more ways I can say that there is no fourth way.’ Keith Hill
September 2005
‘The only way to meet the demand of a motion would be to rob Peter to pay Paul: less for new build or fewer people helped.’ David Miliband
September 2006
‘If we were to spend an extra £12 billion of taxpayers’ money in that way, I think we could get back to the days when we were playing with the stability of the economy.’ Ruth Kelly
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Readers' comments (2)
Mrs Lynda Ralph | 03/08/2008 1:13 am
I am the Chairperson of Doncaster Federation of TARA's I am also a voter in Caroline Flint's constituency. I was quick enough to condemn her for her comments to the Fabian Society so I think it only right that I am quick enough to congratulate and thank her for her intention to help in the building of 45,000 social homes a year. This will certainly help reduce the ever growing housing lists all over the country. May I also say that I too think that if someone CAN work they should? My only argument was that NEVER should the threat of losing your home be used as a stick to beat people into submission. I am delighted that "New Labour" finally has some of Old Labour's interest in the common man. Sincerely, Lyn Ralph. Doncaster.
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martin haddelsey | 05/08/2008 3:31 pm
Am I missing something here? Permission to borrow in order to fund social housing development (and access to SHG) will not alleviate financial inability to meet the DHS. Most 'good' councils transferred their stock at the earliest opportunity, when they saw the writing on the wall. Will they really want to build new stock and run the risk of jumping through the same hoops all over again?
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