HCA will take over from TSA

The Communities and Local Government department launched a review of social housing regulation in June, following an announcement by housing minister Grant Shapps at the Chartered Institute of Housing conference in Harrogate.

It is understood the CLG review panel recommended an independent committee inside the HCA carry out the financial regulatory functions of the TSA. An official announcement on the future of the TSA will be made before the comprehensive spending review on 20 October.

It comes as CLG secretary Eric Pickles joined the government’s ‘star chamber’ which will adjudicate on spending disputes with the Treasury. To qualify, a secretary of state has to have their department’s spending review proposals agreed by the Treasury.

David Orr, chief executive of the National Housing Federation, told the organisation’s conference last week: ‘The common consensus is ministers who settle early are likely to be the ones who have been least resistant to significant cuts.’

A CLG spokesperson said revenue spending cuts have been agreed but said capital expenditure reductions have not been finalised. He would not confirm or deny reports suggesting a 30 per cent budget cut. In 2009/10 the CLG’s revenue expenditure was £30.28 billion and capital expenditure was £6.2 billion.

One organisation that will not survive beyond March next year is Birmingham Sandwell’s market renewal pathfinder Urban Living. John Lines, Birmingham Council’s cabinet member for housing, said the pathfinder will close when its current funding runs out. It becomes the first of the 10 pathfinders to close.

In a statement the pathfinder added: ‘In the event funding does become available, partners will assess how best to continue delivery.