Council welcomes idea of advice from professionals sent in by central government
Hull Council could be spared a humiliating takeover of its housing service – provided it accepts expert help.

Local government minister Nick Raynsford could propose that a team of professionals come in as advisers to keep the new administration on track.

Raynsford has been given responsibility for dealing with the issue to avoid a conflict of interest for deputy prime minister John Prescott, who is MP for Hull East.

On Tuesday, Raynsford said he was awaiting the completion of an action plan being put together by the council.

The low-key intervention idea was floated after recent talks with council leader Simone Butterworth. She stressed the Liberal Democrat administration would welcome any expert advice.

The council has been under threat of a takeover since May, when the Audit Commission delivered a damning verdict on the housing service and warned it was heading for insolvency (HT 23 May, page 1). The commission's final report came out this week.

Pressure on the council will be kept up with a formal recommendation from the commission. It is calling on the government to issue a direction to the council under the 1999 Local Government Act to secure improvements across the board. More intervention will follow if the council continues to fail.

Butterworth said: "Nick Raynsford wanted to know if we had the determination to move the agenda forward, not to let politics get in the way and to sort out the financial situation.

"The answer is yes."

The council's latest move is to hand the tenants' federation, officially recognised only last month, prime responsibility for a report on the future of the stock.

The federation, helped by consultants, will work with local people to decide which homes should be demolished. The council estimates 4000 homes will have to be knocked down.

The federation's report will be delivered in December and will also look at the future for the remaining stock.

The council has already suggested community trusts, co-ops or locally based housing associations to manage the housing. Community services executive member Chris Jarvis said: "This report will be completely independent and we have faith in the federation."