Newcastle council appears set for a clash with its unions over the future of its 35,000 homes.
The council is expected to opt for arm's-length management when it debates future investment next month. It has ruled out transfer, the private finance initiative and securitisation. Retaining its current housing management would leave it £225m short, while arm's-length management would offer the chance of at least £160m extra.

But the six main unions within the council have rejected the idea. Unison branch secretary Kenny Bell said arm's-length management was "a stepping stone to privatisation".

The unions have also attacked the council's 20-year regeneration programme Going for Growth. In a report titled Our City Is Not For Sale, they say the clearance and replacement of much of the city's west end area will lead to enclaves of exclusive private housing served by privatised leisure, transport and education facilities.

Newcastle council said the 20,000 homes to be built will be of all types and tenures. The programme is designed to retain existing communities, a spokesman said.