Government hits back at MPs attack on Corporation

A response this week to a select committee report on the corporation rejected claims it unduly favoured large housing associations in its grants and that it would be unwise for it to fund private developers.

The ODPM committee examined the corporation’s role and effectiveness at the same time as the organisation underwent an “end-to-end” review by the government.

The two reviews produced some common recommendations, such as clarifying the respective roles of the corporation and other organisations in social housing.

An ODPM spokesman said: “Many of the key recommendations of the committee are being taken forward as part of the end-to-end review action plan.”

John Bryant, policy leader at the National Housing Federation, said: “I presume the select committee was rather more ambitious in its expectations but it’s hard to see any change in government policy at all.”

The NHF opposes social housing grant being paid to developers and for larger associations to be given priority for funding.

A government spokesman said the corporation was “concentrating development resources on those associations thought be able to deliver sizeable development programmes on time and on budget while meeting set requirements”.

Many of the homes completed will be passed on to smaller specialist associations to manage.

Proposed corporation grants for private developers were “a value for money measure” while the select committee was wrong to oppose the merger of regional housing and planning boards, as the move would “strengthen integration of housing and planning activities”.