Jilted arm’s-length management organisations confront government over £150m funding delay
Battle of the ALMOs
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Arm’s-length management organisations are considering a legal challenge against the government after it delayed £150 million of their funding.
The National Federation of ALMOs confirmed that its members have been looking at taking the government to court and would not rule out legal action if other attempts to reverse the decision fail.
In July the government deferred around £150 million from next year’s decent homes budget that was earmarked for ALMOs that have not yet received two-stars from the Audit Commission. Eleven ALMOs, which manage 137,265 homes, are affected by the decision to delay funding until 2011/12.
Any legal challenge would be supported by the NFA and the Local Government Association but would be brought by individual councils. It would centre on letters sent by the Communities and Local Government department to individual ALMOs at different stages over the last 18 months indicating how much decent homes cash they could expect to receive. The NFA believes this could constitute a contractual agreement.
Gwyneth Taylor, policy director at the NFA, said: ‘Since the CLG and Homes and Communities Agency spelled out the amount that would be available in each year that does seem to appear to amount to a contractual agreement.’
Legal action would be a ‘last resort’ and the NFA would try for a ‘common sense solution’, Ms Taylor added.
The parent councils of ALMOs have requested meetings with housing minister John Healey to discuss the impact that deferring funding will have on their refurbishments programme. The NFA, LGA, London Councils and lobby group Councils with ALMOs are also planning to lobby MPs and opposition members once they return to parliament.
A spokesperson for ALMO Homes in Sedgemoor said: ‘[We support] the NFA and LGA’s current research into a possible legal challenge. We have written to the minister expressing our disappointment and seeking a reversal of his decision.’
Sean Brennan, leader of Sutton Council, said: ‘This is a kick in the teeth for tenants and staff. Everyone has worked so hard to secure this essential funding. We will do everything we can to challenge the government for reneging on its promise.’
A spokesperson for the CLG said the letters sent to ALMOs had made it clear that the decent homes money was dependent on them achieving a two-star rating in addition to whether or not the funding was available.
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