Comment

Another week, another threat to the decent homes target. As if the recent catalogue of failed stock transfers were not enough to scupper any chance of meeting the 2010 goal, now potentially insolvent housing revenue accounts are posing an additional challenge to the government's ambitious aims (see page 7).

In some local authorities the pots of cash raised by rents are dwindling because councils, understandably, can't resist raiding them for capital works. In most cases, though, rent restructuring is the cause of the crisis. Until now, the spotlight has been on rent reform in housing associations.

Although the government intends to offer compensation for management and maintenance as a result of its rent restructuring policy, the amount of cash it makes available is unlikely to plug the funding shortfall. The only way for councils to dodge bankruptcy will be through slashing repairs and maintenance – and it's easy to see how denying tenants central heating improvements or a lick of fresh paint will undermine the decent homes target.

For a government that prides itself on joined-up thinking, this appears to be an astonishing oversight – one Whitehall policy is a direct threat to another.

One Whitehall policy is a direct threat to another – so much for joined-up thinking

Just last week the government launched its consultation on housing finance which promised "radical options" for reform, offering the sector a chance to untangle the mess. With the government seemingly keeping an open mind and inviting suggestions on improvement, now is the time for local authorities to take a hard look at housing finance. They need to dig out the accounts books, dust them down and take them along to the council chamber for some much-needed scrutiny, as well as get to grips with the consultation paper.

Even the consultation paper admits that few professionals understand how the housing finance system works, "let alone councillors and tenants". But the inclination to shy away from the hard sums must be resisted.