Councils and RSLs to share Pls

Housing associations and councils are to be judged on a common set of Best Value performance indicators, the government has revealed.

The long-awaited proposals on Best Value launched this week say that ministers want to bring the PIs of the two housing sectors into line.

The consultation paper on PIs puts forward a plan for "maximising the read across on performance indicators between local authorities and RSLs."

The paper reveals that the Housing Corporation will soon publish a new set of PIs that are common to both sectors. But indicators that are specific to both sectors will still remain.

Such a move would raise the question about the long-term need for two separate housing regulators. One source said: "If there is a commitment to more common approaches there are issues about the future of the two regimes." The Audit Commission and the Housing Corporation are likely to be jockeying for position over the next few years to take on the potential single regulator role.

Corporation deputy chief executive Simon Dow said the agency would be looking to "maximise the similarities" in PIs. But he claimed there was a need for two regulators because the corporate governance and finance of both sectors was "fundamentally different". And he insisted the corporation had no aspirations to regulate councils.

National Housing Federation director of policy Liz Potter said "RSLs are independent and they have their own version of Best Value. What is needed is partnership between local authorities and housing associations in making Best Value work."

But Chartered Institute of Housing Best Value project officer Marian Reid said: "The commitment to developing "read across" on PIs between the two sectors is welcome. This work must now be a priority and RSLs must actively engage in the forthcoming debate."

The Best Value guidance which was also published this week instructs councils to plan for "diversity in the way services are delivered." The guidance has a strong emphasis on the need for competition and it suggests "breaking up services currently provided to a uniform standard."

Owen Inskip chief executive of the private management firm JSS Pinnacle said he expected lots of business under the new regime. "There is an enormous benefit to outsource say a quarter of a council's stock. You don't just get better performance you get a competitive edge across the borough."