Struggling council considers dissolving ALMO

Published by Max Salsbury for 24dash.com in Housing and also in Communities, Local Government

Derby City Council is considering dissolving its ALMO, Derby Homes, and bringing its properties back in-house to cut costs.

The council has reported that it is experiencing "acute financial pressure as a consequence of the severe grant reductions by the coalition government".

Currently employing around 300 people, Derby Homes was set up in 2002 and manages 13,330 properties on behalf of the council.

According to Councillor Baggy Shanker, Cabinet Member for Housing and Advice, the council and Derby Homes are exploring together the pros and cons of bringing housing services back under the responsibility of the council or whether there is added value that can be gained by retaining the ALMO arrangement.

He added that he believes that there should be no more than 10 job losses if the move goes ahead.

Cllr Shanker said: "We would like to stress that no decision has yet been taken and that we will work closely together to find the best outcomes for all concerned. We will seek the views of all stakeholders particularly tenants, leaseholders and Derby Homes staff that could be affected. If the proposals were adopted, current tenants of Derby Homes would not experience changes to their tenancies and the Council would maintain the high quality service to tenants which Derby Homes have been delivering for the last ten years.”

A Derby Homes spokesperson said: "Derby Homes understands the current financial pressures faced by Derby City Council. The council has had to review all of its services and we accept that Derby Homes will be included as part of this process.

"A review of housing services will soon be underway, led by Derby City Council, Derby Homes and a tenant representative. Details are still being worked out, but we hope that initial proposals in January will be followed by a consultation period and a firm proposal of the options by June 2013.

"We are very pleased that Derby City Council recognise the excellent job we have done in providing high quality services to tenants over the last ten years and are sure they will take this into account as part of any review."