Fighting for scraps

ALMOS

What’s needed? Two more rounds – five and six
How much will it cost? At least £2bn over the three years of the review for rounds five and six – arm’s-length management organisations were allocated £820m in the first year of the review, but this is for rounds one to four only.

“Round five has to be as soon as possible. We are getting into the last-chance saloon for further rounds of ALMO funding to help hit the decent homes standard,” says David Thompson, programme manager for housing at the Local Government Association. Recent ODPM figures bear out this view. Of the 320 councils that manage housing, 164 have yet to decide how they will bring their stock up to scratch by the decent homes deadline, 2010. The ODPM has promised a more money, but has not said when, or how much (HT 9 July, page 7).

This is causing frustration. “We just want to know,” says one housing director. ALMOs have been the most popular choice with councils for drawing down funds that aren’t available if they keep direct ownership of their homes, as the option tenants can most easily swallow.

However, although £2bn has been set aside for the first four rounds, experts think the same sum will be needed if many of the 164 plump for ALMO. John Perry, policy consultant for the Chartered Institute of Housing, says: “The worry is that with the new emphasis on housebuilding there won’t be enough to provide for this as well as for decent homes through bodies such as ALMOs. It’ll be a tough decision.” The Treasury agrees, seeing ALMOs as cash-hungry compared with stock transfer. If savings need to be made, they’ll probably come from ALMO funds.

Supporting people

What’s needed? Funding for the next three years
How much will it cost? £1.4bn in 2005/6; £1.35bn in 2006/7; £1.3bn in 2007/8

The ODPM is not giving out any dates for the unveiling of next year’s Supporting People budget. However, sources expect the announcement at the end of August or in early September.

The sector is keen to know as soon as possible to avoid the budgeting chaos that past late announcements have caused. “My worry is there won’t be an announcement until after the [parliamentary] recess. That would be disastrous,” says Diane Henderson, head of care and support at the National Housing Federation. “Last year people had to do business plans and budgets without knowing what they were getting.”

The ODPM has produced reams of research showing the Department of Health benefits from Supporting People – even though it doesn’t contribute to the £1.8bn pot for 2004/5. Now sources say the two departments are thrashing out how much each should pay.

Several commentators have speculated the government will cut the fund to £1.4bn. The NHF hopes it will stick with £1.8bn but recognises it’s unlikely to get any extra cash to cover inflation.

Key worker living

What’s needed? Cash for 2006/7, 2007/8
How much will it cost? £1bn

If any funding stream is inviolable, this is it. Launched in March as a successor to the faltering £350m Starter Home Initiative, Key Worker Living is central to the government’s drive to ensure public sector workers can afford to live near to where they work.

Deputy prime minister John Prescott says the £690m programme is central to “building sustainable communities”. As word-of-mouth has spread and marketing campaigns have taken off, the popularity of the scheme has rocketed. However, it has funding only until the end of 2005/6 and practitioners are desperate to hear that it will be extended.

Graeme Moran, director of Metropolitan Home Ownership and one of eight “zone agents” who administer the cash, says: “All the evidence that we have seen is that the demand for this scheme is huge. It could easily be expanded to include more groups that presently don’t qualify. The demand is there and it matches government policy, plus we can offer pretty good value for money to meet the Treasury’s efficiency agenda.

“If we were to get less than £345m per year, that would be very disappointing. The government would definitely be missing a trick and undermining its argument and commitment to sustainable communities.”

He is unlikely to be disappointed.

And the rest

English Partnerships
What’s needed? To maintain the present level of funding so EP can keep buying surplus brownfield land.
How much will it cost? £1.2bn over three years – and EP will probably get it.

Planning
What’s needed? Increased funding to pay for more and better planners to process applications more quickly and effectively.
How much will it cost? £450m over three years. A good bet to get the money.

Homelessness
What’s needed? More money to maintain progress in reducing numbers of rough sleepers and homeless families and to signal that homelessness has not taken a back seat to building homes.
How much will it cost? £300m over three years. But if cuts have to come, expect them to be here.