Regional boards at heart of Communities Plan

Deputy prime minister John Prescott will launch a regional network of housing boards as the backbone of his Communities Plan in January.

Government regional agencies have been preparing housing investment boards, each chaired by a Government Office director, since Prescott's housing statement in July.

Speaking at a select committee hearing last week, housing minister Lord Rooker revealed further details of the government's plans. He said: "The intention is to make housing a regional function and to have a single housing pot for local authorities and housing associations to fund projects on a regional basis."

Asked whether this would require the cooperation of an elected regional assembly, Rooker replied: "No. We are starting the process now with the Government Offices, regional development agencies and Housing Corporation. Everything will be set clear in January."

The regional bodies' task will be to turn existing regional housing statements into strategies. Funding streams will be allocated according to each strategy.

The Housing Corporation is to take a place on each of the boards. Other board members will come from the regional development agencies and English Partnerships. The three Northern housing forums and the National Housing Federation are also expected to win seats at the table.

The arrangement will throw a lifeline to the Housing Corporation following the loss of its inspection role in September to the Audit Commission (HT 3 October, page 7).

Corporation investment director Max Steinberg said: "The corporation expects to retain its grant allocation role. But we would want to ensure the money was allocated against a backdrop of the regional strategies."

If elected regional assemblies are established outside London from 2007, the boards would be swept away by direct regional decision making.

It is understood that the deal for the corporation was thrashed out at a meeting with top civil servants in September, following the loss of its inspection role.

The corporation already uses the same geographical boundaries as RDAs and Government Offices.

But EP, which is to take an increasing role in housing and regeneration, must reorganise.

The corporation is keen to make use of EP's compulsory purchase powers for site assembly in market renewal areas. Steinberg said housing funds would not be allocated simply to use existing public landbanks.

Jim Battle, head of North regions at the National Housing Federation, said: "We were concerned that the corporation was not in the regional development loop, so the new focus on regional issues is very welcome. It will increase the corporation's influence."

Steinberg has joined an EP team developing a database and strategy for best use of brownfield land. It will report to Prescott in the spring.