Corporation keeps control of funding after assembly ‘no’ vote

The Housing Corporation will retain its funding powers in the North-east after voters rejected plans for an elected regional assembly.

The proposals, which would have seen responsibility for the corporation’s £97.98m annual North-east budget shifted to the elected assembly, have been shelved following last week’s “no” vote.

A spokeswoman for the ODPM said the existing North-east assembly would determine where funding was targeted but “if there is no elected regional assembly the Housing Corporation stays in control of funding”.

Jon Watson, director of business strategy for Home Group, welcomed the news. He said: “No change is good news unless any change would have led to an increase in funding, which is probably not a reasonable assumption.

“The existing system works pretty well and serves the interests of housing associations well because the corporation is dedicated to funding housing associations and we are one of their larger customers. No change must be good because it is a known system.”

Malcolm Bowes, assistant director for regional development for the North-east assembly, said: “What it means is that the situation in the North-east is the same as every other region. As an existing assembly, there is no suggestion we are going to start asking for the transfer of powers that the elected assembly would have had.”

Despite the ballot result, other aspects of regional housing strategy across the country are unchanged, including the likely merger of regional housing and planning boards. Those plans are part of the ODPM’s response to Kate Barker’s review of housing supply, which is out for consultation until 30 November.

Merron Simpson, head of policy at the Chartered Institute of Housing, said: “It will happen. Moving [those responsibilities] to the assembly could give it some sort of political mandate, even if it is non-directly elected.”

Under the moves, the regional assemblies will still have to consult with the individual groups that make up the housing boards – but decision-making power would rest with them.

Jonathan Blackie, regional director of the Government Office North East and chair of the regional housing board, said: “A no vote mustn’t mean that we sit on our hands. We have got to move forward and housing is an important part of that. We have got a clear time-table and we have got a programme of managing the resources that we have.”

Michael Laing, director of housing services for Wear Valley council, added: “I think in terms of housing the regional agenda continues.”