Speaking exclusively to Housing Today, John Prescott revealed his concern that the money he had won from the Treasury to be invested in building more than 200,000 new homes in the South-east is not being spent fast enough. He was particularly concerned about the limited use of off-site manufacturing.
He said: "I've a real problem here – I've got a £22bn programme from the chancellor, so I want to make sure I spend the money. I want key-worker housing but I'm not convinced we're doing it fast enough yet. I think sometimes there's a tendency for administration to set up systems to take longer than it should."
He said he would be "watching the industry every day to check how fast it is moving".
Prescott fears the £22bn programme of investment he outlined in the Communities Plan will not be seen through because of Treasury concerns that the cash has not been spent. He dreads having to return to chancellor Gordon Brown in the next 18 months to ask for more resources in the 2004 spending review, and having to admit that millions pledged in 2002 have remained unspent.
Prescott said he would meet the principal players in the industry within a month. He said: "I'll be bringing everybody in and saying 'I've got a commitment – there's people waiting for houses – I want to deliver – I've got the money – so for God's sake don't tell me you can't build them!' So we've got to hurry, hurry."
I’ve got a commitment, I’ve got the money, so for God’s sake don’t tell me you can’t build the homes
John Prescott, deputy prime minister
He will call on them to explain why he is receiving conflicting messages from housing associations – whom he singled out as particularly at fault – and suppliers of off-site technology.
He will demand to know why faster progress has not been made in bringing OSM housing on site since last September, when the £300m Challenge Fund was first unveiled as a boost to the use of modern construction methods. (HT 19 September, page 7). Even though money has been made available to fund schemes and educate planners, results have been thin on the ground, he said.
Prescott declined to reveal what steps he might take to bring the industry into line, saying only: "I'll say, I want you to do better, and we'll see where we go from there".
A senior housing source hit back at Prescott's criticism. He said: "I think Prescott has underestimated the lead-in time taken for programmes. The Challenge Fund money was only with associations in March and the process has been hit by arguments between the Office of the Deputy Prime Minister and Housing Corporation about precisely where money should go."
Chris Blundell, development and regeneration manager at Amicus Housing Group and a member of OSM client body Amphion, said: "You shouldn't expect to see change overnight. We are doing all we can, but housing associations alone are not strong enough to be market leaders."
Source
Housing Today
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