Best Value in Housing Framework (Hansard, 25 May 1999)

§ Ms Armstrong

On 21 January 1999 we published the consultation paper "Best Value in Housing Framework". This explained the framework within which local housing authorities will need to operate in obtaining best value in housing taking into account key housing aspects such as the relationship between best value and the Housing Investment Programme; the important role of tenants and residents; and the operation and establishment of the Housing Inspectorate.

The consultation paper flowed from the work of the Best Value in Housing Steering Group which brings together representatives from my Department; the Local Government Association; the Chartered Institute of 93W Housing; the Audit Commission; the Housing Corporation; the National Housing Federation; and TAROE–the Tenants and Residents Organisations of England. Consultation ended on 16 April 1999. We received 268 responses from across a wide range of local authorities, tenants organisations and housing professional bodies which will help inform the content of the final guidance.

I am pleased to announce that the consultation shows that there is strong support for the principles of best value in housing as set out in the consultation paper and, in particular, for the involvement of tenants and residents. There is also strong support for a protocol setting out the working relationships between the key organisations involved in assessing housing performance at the local level and compliance with the duty of best value. The consultation paper has been instrumental in raising awareness of best value among local authorities and others. Many local authority respondents indicated that they have found it a useful guide in helping them to prepare for best value.

In supporting the principles, a number of respondents raised resource, staffing and budgetary concerns relating to the implementation of best value. We accept that there are likely to be some compliance costs in areas such as best value reviews and performance plans. However, the intended purpose of the best value provisions is to secure continuous improvements in the way in which local government exercises its functions. The improved efficiency and effectiveness in the use of resources which result is expected to deliver cost savings as well as improvements in service delivery. To ensure efficiency, best value will be underpinned by rigorous audit, inspection and enforcement provisions. These will include the audit of the local authority performance plans as well as their accounts, which will include the costs of conducting reviews and preparing plans. The clear signal from the consultation is that we should proceed to work up a final set of guidance on the application of best value to housing. We aim to publish this towards the end of the year. The timing reflects the need to take account of the statutory arrangements to be put in place for best value.

In taking this work forward, through the Best Value in Housing Steering Group and others, we shall also want to take account of the detailed comments of respondents to the consultation exercise; further emerging lessons from the best value pilots; the read across to the work of the Housing Corporation in applying best value to registered social landlords; and the arrangements being developed by the Audit Commission for the operation and establishment of the Housing Inspectorate. Meanwhile, it is important that all local authorities, if they have not already done so, start planning ahead for best value. The new duty of best value, as laid down in Part I of the Local Government Bill, is expected to apply as from 1 April 2000.

I am placing a list of the respondents, excluding any who requested confidentiality, in the House Library together with a report providing an analysis of the responses. The list and specific responses are available in the Department of the Environment, Transport and the Regions Library, Ashdown House, 123 Victoria Street, London SW1E 6DE, telephone 0171 890 3039.

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