Councils voice confusion over fourth funding option muddle

Councils have expressed confusion over the future of their housing stock options after deputy prime minister John Prescott announced the system was up for review at last week’s Labour party conference in Brighton.

The Local Government Association has led calls for Prescott to clarify what he meant and how this affects the timetable of completing a stock options appraisal by July 2005.

The temperature has been raised further this week by a letter to English councils from anti-stock transfer MP Austin Mitchell urging them to “freeze” their stock options appraisals.

Speaking after losing a vote by Labour delegates in Brighton on whether or not to allow councils a fourth option – in addition to stock transfer, arm’s-length management or the Private Finance Initiative – Prescott said: “Public financing of housing does not treat local authorities on a level playing field and I want that changed,” (HT 1 October, page 7).

These comments have led councils to question whether or not they should press ahead with plans to decide how to meet the decent homes target. An LGA spokeswoman said: “The LGA will be seeking a meeting with John Prescott. We need a clear message on what options are open to authorities.” Nick Murphy, executive director of housing at Southampton council, added: “We need a clear line from the ODPM. However, until we hear any differently we will assume we are still working towards the July 2005 deadline.”

Murphy added that he had received Mitchell’s letter and that he would raise the matter of “freezing” the stock options appraisal at the next meeting of the steering committee that oversees the process.

Of Southampton’s 17,685 homes, 10,000 don’t meet the decent homes target. It has yet to decide on an option to access extra funding.

Jack Hazelgrove, chair of Brighton council’s housing committee, confirmed that Brighton would be requesting clarification of what the deputy prime minister had said.

An ODPM spokeswoman said: “There is no review of housing finance. The date for the July 2005 options appraisal still stands.”