Saturday, 31 July 2010

Healey: freedoms for councils within a month

New housing minister tells CIH conference that one of his first acts will be to hand local authorities greater financial leeway

The new housing minister will announce greater financial freedoms for council housing departments within a month.

John Healey confirmed that he would launch plans to reform the controversial housing subsidy system before MPs break for summer in July, in an interview with Inside Housing.

Earlier the former local government minister set out his initial plans for his new job, at the Chartered Institute of Housing’s annual conference.

He pledged that there would be ‘a great deal of scope for local authorities to do more to meet the economic and housing needs in their areas’.

Any change would be based on the principle that local authorities should have more ‘flexibility in finances’ and see more control devolved to local areas, he stated.

He spoke out on the same day the Local Government Association launched a new report claiming councils could build 300,000 new homes over the next 10 years if they were freed from the current housing subsidy system.

Interview: a man with an easy manner

John Healey did his best to settle nerves when he sat down with Inside Housing this week for his first interview as housing minister.

The big question has been: how will the government reform council housing finance? Less than a fortnight into the job, Mr Healey wasn’t prepared to shed much light on the subject. ‘I’m not going to tell you what I’m going to do,’ he said with a smile.

But when pushed he revealed that the sector is unlikely to have much longer to wait, confirming that he wants details of reform out within the month.

The third housing minister within a year may not have long to prove himself, but at least his last job (as local government minister) and easy-yet-considered manner set him in good stead.

Most likely to be of immediate interest is Mr Healey’s suggestion that council housing departments will be given more freedoms, but only if they take more responsibility for house building themselves. ‘My argument is that for councils simply to use the alibi that the government isn’t giving them all the money they might need is not good enough,’ he said. ‘Local government could do more than it is already doing. When we make the reforms that I pointed to in my speech they’ll be able to do more still.’

Should councils take talk of underused resources as a warning to expect watered-down freedoms once the HRA review final emerges? ‘No, you shouldn’t read anything into that,’ came the minister’s reply.

And then he’s again. Next stop: Harrogate Citizens Advice bureau to do ‘everything we can’ to help people remain in their homes.

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