HC Deb 18 November 2003 vol 413 cc797-9W
Mr. Purchase

To ask the Deputy Prime Minister pursuant to his answer of 3 November 2003,Official Report, columns 497–98W, on council housing, what the 10 per cent. additional subsidy represents in cash terms to a local authority. [139140]

Keith Hill

The additional subsidy to support borrowing for expenditure by Arm's Length Management Organisations (ALMOs) for local authorities with ALMOs that qualified for funding in 20027–03 and those that have so far qualified in 2003–04 is as follows:

£
Local authority Subsidy2002—03 Subsidy 2003—04
ALMO qualified in 2002—03
Ashfield 1,012,603 2,400,000
Derby 1,312,164 3,110,000
Hounslow 1,179,452 3,500,000
Kirklees 1,917,808 6,250,000
Rochdale 835,397 2,420,000
Stockton-on-Tees 1,353,288 4,450,000
Westminster 745,260 2,030,000
Wigan 1,788,932 5,830,000
ALMO qualified in 2003—04
Barnsley 2,773,770
Blyth Valley 1,329,235
Bolton 3,427,131
Brent 2,342,213
Kensington and chelsea 1,580,334
Leeds (north east and west) 1,225,282
Oldham 3,033,211
TOTAL 10,144,904 45,701,176

Overall subsidy entitlements for later years, including those for ALMOs that have yet to qualify for funding, have yet to be determined.

Mr. Purchase

To ask the Deputy Prime Minister what requirement there will be on regional housing boards to ring-fence additional subsidy provided for arm's length management organisations. [139575]

Keith Hill

Regional Housing Boards advise Ministers on the allocation of housing capital resources. They do not make recommendations on the allocation of funding specifically for arm's length management organisations (ALMOs).

The additional funding awarded for ALMOs takes the form of Housing Revenue Account Subsidy to support borrowing. Housing Revenue Account Subsidy may be used only for Housing Revenue Account purposes.

Mr. Purchase

To ask the Deputy Prime Minister pursuant to his answer of 3 November 2003,Official Report, column 498W, on council housing, what plans he has to continue additional funding for arm's length management organisations beyond Rounds 1 and 2 of the current programme. [139576]

Keith Hill

I announced on 28 July 2003 (in the Office of the Deputy Prime Minister's Press Notice 147) that 13 local authorities have been awarded places in Round three of the Arms Length Management Organisation (ALMO) programme. Conditional funding for these ALMOs totals £360 million for 2004–05 and 2005–06. This is in addition to the 20 authorities with confirmed or conditional 2-year allocations of ALMO funding totalling £700 million in Rounds one and two. Bids for places in Round four have been invited by 31 December 2003. Funding for ALMOs beyond 2005–06, including possible further Rounds, is subject to the outcome of the 2004 Spending Review.

Mr. Byers

To ask the Deputy Prime Minister what steps he is taking to ensure that equal funding is being made available for tenants who wish to remain within council ownership and control rather than stock transfer as an arm's length management organisation. [138894]

Keith Hill

The Sustainable Communities Plan made it clear that local authorities seeking additional investment in their housing stock are able to choose from three options: stock transfer, PFI and ALMOs.

The Plan also made it clear that authorities that do not pursue these options cannot expect increased investment above that provided for through mainstream housing funding.

The funding available for social housing, although greatly increased under this Government, is inevitably limited; and we wish to use it in ways that will most improve the lives of tenants.

To make best use of those resources the Government will only provide additional funding to councils that separate their landlord and strategic functions. This provides a strong incentive to better performance; ensures a sharper focus on the two distinct housing functions; and guarantees that tenants have a greater role in the future management of their homes.

Mr. Byers

To ask the Deputy Prime Minister what procedures he has put in place to ensure that full and effective consultation takes place with council tenants during the appraisal of the option of stock disposal; and if he will make a statement. [138895]

Keith Hill

The Government are committed to bringing all social homes up to set standards of decency by 2010. The PSA Plus Review of the decent homes target emphasised that tenants must be at the heart of plans to deliver decent homes.

Arrangements for involving tenants should be set out in locally agreed Tenant Participation Compacts. These should be based on standards set out in the National Framework for Tenant Participation Compacts. Tenants must have access to independent advice and support and to capacity building and training throughout, from the investment appraisal stage to after transfer. An Independent Tenant Adviser (ITA) should be appointed at an early stage in the process and retained until after the ballot.

With ALMOs, local authorities should consult with tenants on the functions to be transferred and the continuing role of the local authority, and the rights of tenants and leaseholders. They should consult on the composition and status of the arms length body and its Board, including the selection and role of the tenant Board members.

In the case of a Transfer, tenants should be central to all stages of the investment appraisal and development of a proposal, including the selection of a prospective new landlord. Tenant consultation and participation should feature strongly in transfer proposals, and transfer landlords are expected to provide opportunities for tenants to have a real say in the management of their homes.

In order to inform tenants about the Decent Homes agenda the Office of the Deputy Prime Minister is organising a series of regional roadshows that will help to develop their skills and knowledge so that they can participate effectively in the Options Appraisal process. We are also making arrangements to produce a video for tenants explaining the various stock options.

Jon Trickett

To ask the Deputy Prime Minister how many council houses have been the subject of stock transfer since June 2001; and what the average capital receipt per property accruing to the local authority was. [139550]

Keith Hill

205,483 dwellings have transferred from local authorities to registered social landlords since June 2001. The average tenanted market value per dwelling was £4,990. The tenanted market value reflects the requirement to maintain the property for social renting and to a decent homes standard in perpetuity.

Mr. Drew

To ask the Deputy Prime Minister what recent discussions he has had with the Audit Commission on the effects of large scale voluntary transfers. [139436]

Keith Hill

Officials work closely with the Audit Commission and were members of the study advisory group for the Commission's report on Housing after transfer: The local authority role which was published on 5 December 2002.