Regional housing boards will be able to stop all funding for specific councils if their needs do not fit with regional priorities.
The ODPM confirmed this decision in a guidance note sent out to the boards’ chairs last Thursday by housing minister Keith Hill.

It said: “Ministers will not ask regional housing boards to provide any minimum level of support to local authorities.

“Each board will be free to advise on the level of support, if any, to local authorities.”

The news has raised fears that smaller councils may lose out, if they do not fit within previously assigned growth areas or market renewal regions.

The government also said councils’ stock option plans should not assume that they will receive more funding in future, leading some to conclude that the spending review is unlikely to be generous to housing.