Axing £112 million of funding to improve social housing in Sutton would spark World Cup-style anger and disappointment, it was claimed today.
Sutton Council and Sutton Housing Partnership (SHP) were promised the money to bring thousands of council houses in the borough up to a decent standard.
But the Government’s reduction in the funding available nationally for improvement and changes to the rules for allocating it has thrown the award into doubt.
Cllr Jayne McCoy, Sutton Council’s Executive Member for Planning, Economic Development and Housing, said: “We have played by the rules and all we are asking for is a fair deal for our residents.
“We don’t want to see a Fifa-style situation, where officials promise people one thing but then deliver another. If the deal is reneged upon, residents would be angry and disappointed – and see it as a sign of the total disregard for their poor living conditions.”
Andrew Taylor, chief executive of SHP, said: “Not for the first time we are ready to bring the homes of our residents up to a decent standard. Yet again we’ve seen the government move the goal posts at the last minute.”
SHP, which manages over 6,000 Sutton Council homes in the borough, was awarded the money earlier this year after receiving a coveted ‘two star’ rating by the Government's independent public sector watchdog, the Audit Commission.
It is critical to delivering improvements, such as replacement windows, kitchens and bathrooms.
It will also pay for the replacement of out-dated box bathrooms on the St Helier estate, increased insulation and upgrading tower blocks such as Chaucer House in Sutton.
To date, SHP, Sutton Council’s arms-length management company (ALMO), has received only £5m of the money, leaving £107.5m outstanding.
But the planned reform of the system has slashed the amount of money available nationally to improve social housing.
It will also open up the limited funding pot to all councils with more than 10 percent non-decent homes, not just those with ALMOs which have been promised money already, undermining all the work Sutton has put into qualifying for the funding.
Cllr McCoy said: “This is a matter of principle, honour and ethical treatment.
“Priority must be given to those who have achieved two stars and whose money has been promised but not yet delivered.
“The resources available should be topsliced and allocated to those authorities who have played by the rules, leaving the remainder to the new bidders.”
And Frank Berry, chairman of the Sutton Federation of Tenant and Residents' Associations, said: “On behalf of my fellow tenants I’ve already written to the Deputy Prime Minister to ask him to honour his promises to us. I’m still waiting for his reply.”
Sutton has been fighting for a better deal for its tenants for years.
Under the current system the Government uses Sutton tenants' rents to pay for improvements to housing and housing debt in other parts of the country.
Council tenants across the borough currently pay the government £10m a year in what is known as negative housing subsidy.
The government is promising to see through the reform of the system and says that by helping councils to become “self-financing” it will enable them to maintain their housing to the necessary standard in future.
But authorities say there is still no detail available and have doubts that the settlement will be sufficient for this.
Cllr McCoy said: “While we welcome proposals to reform the housing finance system, it has to be done in a fair way".
Picture – Sutton councillors, MPs and residents call for a fair deal for Sutton tenants during a protest at Downing Street in 2009
Posted on Wednesday 8th December 2010