Millions of pounds in government repairs grants are set to move from London to Northern towns under radical new proposals.
A government consultation paper released on 17 July proposed major changes to the way the £3.1bn management and maintenance grant for councils and arm's-length management organisations is distributed.

Authorities that lose out under the proposals could be more inclined towards stock transfer and winners may get a breathing space to consider their options.

The proposed changes to the grants, the biggest for 14 years, would result in Westminster council in London losing an estimated £7.8m in the long term while Sheffield council would gain around £5m.

A spokesman for CityWest Homes, Westminster's ALMO, said: "We are looking very carefully at the ODPM's proposed changes to maintenance and management allowances. Anything that takes money away from us will threaten the government's own decent homes targets."

London authorities are discussing the proposals with Association of London Government next week.

Anything that takes money away from us will threaten the government’s own decent homes targets

Spokesman, CityWest Homes

Philip Taylor, head of finance in Sheffield council's neighbourhood directorate, said: "Our grant is increasing 9%, which is considerably more than we have seen under any year in the current system."

Former Chartered Institute of Housing policy director John Perry explained that the changes were intended to correct the old system, which is partly based on authorities' spending patterns in the 1980s.

It gave London 30% of the resources despite having 20% of the stock and had consequently tended to penalize northern areas.

Source

Housing Today