Four may lose out on £238m of decent homes cash unless IT and maintenance improves
Poor performance by Leeds council means four of its six arm's-length management organisations may not be able to access an extra £238m of government funding.

The council's scrutiny committee has concluded that the ALMOs' efforts to get the cash could be futile if the council does not improve the services it supplies to them, such as maintenance and IT.

A report by the committee which has just come to light questions whether the council will be able to improve the services in time to meet the demand made by the public spending watchdog the Audit Commission.

The second-round ALMOs all failed to gain the two stars required for them to start spending their conditional allocations when the commission inspected them last summer.

Their final chance to obtain the two stars needed to access the extra money will come when they are reinspected this summer.

Our principal concern is the ability of the council to respond to the Audit Commission’s criticisms

Leeds council scrutiny committee

The scrutiny committee report said: "The ALMOs appear to be 'on top of their game' and in a strong position to improve. Our principal concern, however, lies with the ability of the strategic landlord and the city council to respond to the Audit Commission's criticisms in time for reinspection.

"We are particularly concerned that those ALMOs working towards reinspection are not faced with the same corporate issues raised during the initial inspection.

"A key issue for the board is whether the changes the inspectors would wish to see from the council can be achieved in time for a reinspection. Failure to meet this timetable may result in an ALMO being taken off the ALMO programme and having to re-apply."

The scrutiny report said Leeds council's inability to itemise the services it provides, problems with its IT services and the need for an integrated stock condition information system were possible barriers to the ALMOs receiving two stars.