They are schemes in Manchester, Leeds Sandwell and North East Derbyshire. In a move that underlines the complexities of PFI deals, the other four have been asked to submit more details by next year. Those put back were all southern councils: Reading, Camden, Newham, and Islington.
Despite the setback for the four, the announcement of funding marks the final confirmation that the government is prepared to support PFI on the HRA - an idea that was once ruled out.
Housing minister Nick Raynsford said: "These schemes demonstrate the contribution PFI can make to improving housing stock, while allowing it to remain in local authority ownership. I am convinced that the PFI approach will prove a valuable strategy for boosting investment in social housing. Other projects are expected to follow."
The delayed pathfinders insist that government doubts about their schemes can be allayed. They have been asked to submit outline business cases by next February.
Reading council's corporate bidding manager Chris Bates said the government was looking for 'technical clarification.' He added: "It's just a short extra hop. I'm sure we'll get there with the DETR's help."
Camden's bid has been held up until it can resolve problems with leaseholders, who claim they face bankruptcy because of the scheme (Housing Today, 16 September).
Newham was the only one of the eight not to submit its outline business case in time for the last deadline. A new in-take of senior staff at the council want to re-examine the bid. A spokeswoman for Islington said: "A few bits and pieces need sorting out."
The councils whose schemes were approved were jubilant. A statement by North East Derbyshire, which has been promised around £14m of government cash, said: "A revolution in social housing could be on the horizon."
Paul Langford, head of finance at Leeds city council which will be granted between £25m and £30m, said: "We're over the moon."
Source
Housing Today
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