The government's controversial single pot proposals for councils have been delayed by a year
Local government minister Hilary Armstrong announced this week that the single capital pot will be introduced in 2002/2003 rather than the year before as initially planned.

She was launching a consultation paper on the details of the plans.

The move will be a relief, at least partially, to housing professionals who fear that the single pot could lead to a leakage of funds from housing to other council activities.

It will also allow mean that council housing departments have more time to establish resource accounting arrangements before the single pot finally comes in. Resource accounting and the new major repairs allowance is still on course for introduction in April 2001.

It is understood that the government decided to delay the single pot after resistance from Whitehall departments, and spending sections within departments.

One senior local government source said: "Even within the DETR, transport and housing fought a rearguard battle against it (the single pot)."

The delay could also mean that the plans are watered down when are they eventually introduced. Another source said the delay was "good news for housing, but bad news for local autonomy."

Councils were also concerned this week about the absence of proposals in last week's Queen's Speech to remove rent rebates from the Housing Revenue Account.

Another consultation on the details of how rent rebates will be removed is expected soon, but councils had hoped that the government would set aside parliamentary time this year for the move.

The plan will end the mechanism by which tenants' rents are clawed backed by the Treasury. The government has ruled out putting that cash back into housing, but it is committed to removing the mechanism.

Local Government Association head of housing group Paul Lautman said: "From what has been said so far the local government bill will not include proposals for removing rent rebates from the HRA. This will be a major disappointment to tenants and councils who have been campaigning on the issue for some time."