Another week, another report on councils' performance from the Audit Commission. This time, homelessness services are under its spotlight and, yet again, the publication is less than flattering. Only one of the 50 councils whose provision has been scrutinised gets an excellent rating, with the majority delivering a fair service.
This verdict is understandable, if not desirable. Dealing with homelessness is increasingly difficult. Inner cities have rising homeless populations and housing stocks already straining to house asylum-seekers – a situation not helped by the chaos in the dispersal system (see page 16). Affordable housing in high-demand areas is in shorter supply than ever. Yet against this imbalance in supply and demand, the government, with all good intentions, has said it wants all 12,000 families currently in bed and breakfasts to have at least a temporary home by March 2004.The pressure is on.

However, as the report points out, success in tackling homelessness is not just about money. Though decisions in Whitehall govern the town hall to a large extent, the efficiency and ingenuity of the council can also have a bearing on whether a mother fleeing domestic violence waits years or just weeks for a home.

For example,the report reinforces a previous finding from the Audit Commission that local authorities are ignoring their strategic role; transferring stock to housing associations does not mean handing over the responsibility for housing local people. It also points out the loopholes that the homeless can fall into during stock transfer. But it does highlight examples of good practice. Derby's innovative approach to assessing need is one such role model.On the wider front, there is more scope for councils to harness empty homes or team up with councils that have space.

Success in tackling homelessness is not just about money

All this doesn't change the fact that many more homes are needed – and not just for the vulnerable. There is already tension between housing associations and councils over nominations, and particularly who is placed in high-density developments. Meanwhile, housebuilder Laing Homes is concerned that its scheme to provide key-worker housing without a grant will be stifled by councils if they are not allowed to nominate tenants.