Six Leeds ALMOs set to break the bank
An independent review of Leeds' arm's-length management organisations has revealed they are likely to overspend by at least £11.8 million by 2010.
And the council has said that subsidy determinations announced in December would add further pressures of £2 million each year.
Financial pressures meant that a review of the future of the existing six ALMOs in Leeds was 'essential if frontline services to the tenants are to be protected', according to a report presented to the council's
executive board last week.
The council has said it will look to merge some or all of the existing ALMOs later this year (Inside Housing, 13 January).
The report revealed that the council is looking at three options that would see the number of ALMOs reduced from six to between one and three. It will also look at ALMO models in other major cities, such as Sheffield and Nottingham.
Following discussions with the Office of the Deputy Prime Minister, officers had concluded that it was not necessary to ballot tenants on the changes.
But councillors from all parties said they would like tenants to be consulted and the council leadership has now made public commitments to hold a ballot.