National Federation of ALMOs gives Eric Pickles food for thought on housing cuts

As the Government starts the final countdown to the most swingeing public sector spending cuts in a generation, the National Federation of ALMOs, the body which represents organisations managing more than one million council houses in England, has submitted a range of ‘proven’  ideas for savings that are fair and responsible.

In a document sent to Eric Pickles, the Secretary of State for Communities and Local Government, in response to his invitation for suggestions on ways to reduce public spending, the NFA says there should also be ‘straightforward’ tests on the likely impact of any proposed savings.

These should be:

• Vulnerable people – would the elderly and disabled be affected?
• Localism – would it boost local decision-making?
• Asset management – with the nation’s housing stock worth billions, is it being stewarded properly? Will cuts today sacrifice the value tomorrow?
• Safety – will it ensure that gas safety, asbestos, Legionella and fire safety matters can be tackled?

Alison Inman, Chair of the NFA, said: “As an organisation we believe in localism, we hunt for every saving we can, although not at the cost of being penny wise and pound foolish and we want to be locally accountable social enterprises.

"These are the three guiding principles underpinning our response.

“The ALMO model has proved itself to be highly effective in delivering enhanced services to tenants and residents whilst facing continual pressure to cut costs. We have real practical experience in these areas; it is our bread and butter. We understand the Government’s need to make savings but that they must be fair and responsible and we will help in any way we can to achieve that.”

The NFA submission covers suggestions on how localism can be used to drive enhanced public services and how tenant satisfaction levels can be improved even on reduced budgets and fewer staff.

But the organisation stresses the benefits of continued investment in housing as it can also deliver other public sector savings in health, unemployment and community safety as well as boosting local economies.

For example, it argues:

• Investing £1.6 billion annually in housing-related support services generates savings of £3.41 billion to the public purse ( among savings it avoids spending £315 million on health, £414m on crime and criminal justice and £95 million on homelessness)
• Refurbishing 500,000 homes annually can create up to 200,000 jobs a year with costs largely offset by reductions in unemployment benefits
• ALMOs that refurbish homes create local jobs; eg Sandwell Homes Decent Homes programme led to 1,000 local jobs and 150 apprenticeships.

Among other suggestions, it says that aligning the boundaries of councils and other public bodies will streamline co-ordination and facilitate the sharing of costs and also calls for incentives to encourage tenants to access services online.

It also says a sustainable deal on the Housing Revenue Account (HRA) would enable long term planning with works planned on a ‘just in time’ basis rather than when funds happen to be available.

On the issue of delivering the Government’s declared ‘localism’ agenda, the NFA calls for strong action to make the policy ‘real’ and meaningful by:

• Abolishing all non-essential State guidance – ‘those that carry the can locally should take the big decisions.’
• Rationalising local housing management so that landlords work together and not in isolation – ‘ take from the poor housing manager and give to the cost-effective.’
• Getting the claims for savings and improvements independently vetted before any ballot on the future of an ALMO so that the council or ALMO is subsequently held to account – ‘make sure the promised savings really happen – send in the auditors Stop stone dead the industry in speculative savings.’
• Abolish useless European diktats – OJEU tenders waste millions and achieve nothing – no one in Luxembourg wants to repair council houses in Doncaster!’