Only £799m is included in the housing investment programme, however. This includes £8m for private sector renewal payments.
Though a figure is given for housing investment, councils are free to spend the cash, part of the single capital pot, as they decide.
The figures do not include £350m of receipts taken into account in the current year. That system, which the ODPM admitted was very unpopular, has been scrapped. The government will also allocate £99m for disabled facilities grants next year.
Local government minister Nick Raynsford said the government was trying to remove ringfencing to councils to spend more cash as they choose.
But experts have questioned the claim. The draft local government bill proposes pooling housing capital receipts. Deputy prime minister John Prescott's "blue skies" consultation on capital finance for councils suggests the receipts could be ringfenced for reinvestment in housing. One insider commented: "That does not sit well with the idea of freeing councils to spend as they see fit."
The ODPM confirmed that, from next year, Audit Commission comprehensive performance assessments will affect councils' borrowing and spending powers.
Though a figure is given for housing investment, councils are free to spend the cash, part of the single capital pot, as they decide
Top performers will get extra leeway to borrow.
But the department would not be drawn on whether poor performers will lose out. Currently, just 5% of allocations are decided on performance.
Raynsford said half of all councils achieved at least a "good" rating for their asset management plans and capital strategies this year. That means they will not have to submit them to government in future.
n This year, 36 councils received "well above average" government office ratings, while 33 were "well below average" this year. That compares with 22 and 27 respectively last year. Among those rated well above average was Coventry, which is rated "poor" in the Audit Commission assessments this week (see page 7).
The South-east has eight top performers this year, with only seven well below average. In contrast, the Government Office North East awarded only two well above average ratings, and the same number well below. Newcastle and South Tyneside took the honours. But long-time top performer Stockton-on-Tees slipped to "average".
Source
Housing Today
No comments yet