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HOUSE of COMMONS COUNCIL HOUSING GROUP Support for the ‘Fourth Option’ for Council Housing

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HOUSE of COMMONS COUNCIL HOUSING GROUP Support for the ‘Fourth Option’ for Council Housing HOUSE OF COMMONS COUNCIL HOUSING GROUP Support for the ‘Fourth Option’ for Council Housing Report on the inquiry into the future funding of council housing 2004-2005 Preface by Austin Mitchell MP Forewords by: Derek Simpson, Amicus Dave Prentis, Unison Councillor Brian Huddless and Alan Walter Content s Members of Council Housing group: Austin Mitchell MP - Chair Forewords ....................................................1 Paul Holmes MP – Vice Chair Joe Benton MP Preface..........................................................2 Martin Caton MP Jeremy Corbyn MP Summary......................................................3 Harry Cohen MP Ann Cryer MP 1. Introduction ..........................................4 David Drew MP Frank Dobson MP 2. The case for the ‘Fourth Option’ ..........7 Mike Hancock MP Evan Harris MP 3. Local authorities – the overall picture..10 Steven Hepburn MP Kelvin Hopkins MP 4. Why councils are unable to finance Brian Iddon MP Lynne Jones MP improvements ....................................13 David Kidney MP John McDonnell MP 5. Post Transfer/ALMO experience..........17 Laura Moffat MP Ken Purchase MP 6. No proven benefits of separating Linda Riordan MP Bob Russell MP housing strategy and management ..24 Alan Simpson MP Dennis Skinner MP 7. Tenants denied real choice ..................26 David Taylor MP Des Turner MP 8. Conclusion ..........................................33 Joan Walley MP Stephen Williams MP 9. Recommendations ..............................37 10. Appendices..........................................38 The House of Commons Council Housing group would like to express special thanks to Amicus whose immediate offer of sponsorship made the production of this report possible and to GMB, UCATT and UNISON for additional financial support. We would particularly express thanks to Lesley Carty, Eileen Short, Alan Walter, John Allott, Olivia Fitch, Michael Cooke, Joy Millward, Umer Khan and Liza Coffin for helping with the research and production of the report. Our thanks also go out to all the tenants, councillors, trade unionists, council officers and many other individuals who provided evidence to our inquiry. Design & layout: smith+bell [email protected] Print: Russell Press, Nottingham [email protected] Forewords ince 1988 successive governments have he group has done a tremendous job promoted the privatisation of council compiling the case for council housing “Shousing. Tenants across the country are “T and the ‘fourth option’ in particular. continually told this is the only way to get invest- Elected councillors are constantly subjected to a ment to tackle urgent repairs and improve homes barrage of arguments, publications and seminars and estates. all aimed at getting us to accept the privatisation But ministers are facing growing opposition of our homes. Many authorities believe that from council tenants, local authorities, council- decent, affordable, secure and accountable lors, trade unions and MPs who are demanding Derek Simpson council housing is a public service worth direct investment by councils in homes and es- defending. It’s a view that Bolsover tenants tates. A few months ago the Labour party confer- overwhelmingly endorsed with a 97% majority ence voted overwhelmingly to oppose the in our recent consultation. The Bolsover privatisation of council housing. This sends a delegation that gave evidence at Parliament clear message that the government needs to re- involved councillors, tenants, trade union think its position. Local authorities provide a representatives and council officers. This report good service to tenants with a well-trained work- is an invaluable resource for councillors around force that ensures good levels of maintenance. the country who need the evidence and Council tenants should not be penalised for arguments to put the case – often in the face of choosing this service. Dave Prentis hostility from senior officers and perhaps Amicus, which represents over 15,000 work- colleagues over concerned at being ‘on message’ ers involved in the repair and maintenance of with government policy. This inquiry gave us the council houses, will continue to campaign hard opportunity to feel part of a strong national to ensure a full and fair debate over the future of movement to win the fourth option of direct council housing. We believe tenants deserve real investment. I hope that councillors in other choice – one that includes quality, affordable authorities will help make sure this report is homes that are managed and owned by their lo- widely read.” cally accountable council. Councillor Brian Huddless, Derek Simpson, general secretary Amicus Cabinet member for Regeneration & Strategy, Councillor Bolsover District Council NISON is proud to have supported Brian Huddless this inquiry into the real wishes of enants around Britain will welcome this “Ucouncil tenants and councils over the report. It will open the eyes of those future of the homes they live in and manage. “Twho haven’t heard the arguments ‘Choice’ and ‘responsiveness’ are the latest Gov- against privatisation or the case for the ‘fourth ernment buzz words for public service delivery. option’. It can sometimes seem hard to challenge Yet tenants and councils are not given choice – senior council officers and consultants promoting choice of landlord or direct investment into their privatisation who pretend they are the experts homes to provide them with the secure, high and their word is ‘fact’. But this report will give standard housing we all need for healthy, happy confidence to supporters of council housing. It lives. Against all the evidence that direct invest- Alan Walter will give more people the courage to stand up for ment would be cheaper and deliver faster im- decent, affordable, secure and accountable coun- provements, tenants, councils and housing cil housing – for us and future generations. workers are marched down the route of stock The Prime Minister has promised he is pre- transfer, ALMOs or PFI against their wishes. pared to listen. The message from council tenants That so many councils have held out against and supporters of council housing that comes transfer or privatisation is testament to the through this report cannot be clearer. I hope that strength of feeling amongst tenants and council- councillors, MPs and Ministers, busy as they are, lors. UNISON has campaigned hard for direct will find time to read this report. You will see that investment and will continue to support tenants council housing is worth defending and that the and local authorities who oppose transfer. This ‘fourth option’ is financially viable, socially bene- report shows without doubt that there is a gen- ficial and so makes political sense too! uine alternative. Alan Walter, Camden tenant and Dave Prentis, general secretary UNISON chair Defend Council Housing Support for the ‘Fourth Option’ for Council Housing 1 Preface s Chair of the Commons’ Council Hous- ‘big hitting’ ministers to undermine local politi- ing Group I regularly hear of abuses to cians, behaviour which I, like Stephen Byers find Acon council tenants into agreeing to pri- unacceptable. vatisation. I did not realise the enormity of it, With anti-transfer tenants and the GMB I pre- however, until I saw it in my own bailiwick, pared a four-sided newspaper to put the case North East Lincolnshire. There the Lib/Con against and warn the tenants. As soon as the coalition controlling the Council was carefully Council got wind of it, it brought the ballot for- tutored in tenant trickery by the ODPM’s “Task ward by two weeks. Large numbers had already Force”, the Trojan Horse of the huge private voted before they heard about any alternative. sector transfer industry which the ODPM has The Electoral Reform Society told me that they created. had no control over this dirty trick (which has The Council could meet the Decent Home by Austin Mitchell MP, been much used elsewhere). They kindly added standard with existing resources. We discovered chair of the House of that the overwhelming majority of voters cast an extra £500,000 a year being charged to the Commons ‘Council their ballots in the first four days. HRA for services payable from the General Housing’ group We lost. North East Lincolnshire’s Council Fund. The consultants recommended by the housing was all given away so I’m sure the ODPM did not point this out. Instead they rec- Council is grateful to the ODPM’s Task Force ommended an ill-defined ‘Decent Housing Plus’ for showing them how to pull these tricks – standard which they claimed could only be at- without, I hope, any reward to itself. However tained by privatisation. others are learning from our bitter experience. The Tenants’ Assembly (which 96% of ten- The Task Force has not been able to help the ants had never heard of) initially opposed this. Deputy PM pull the same stunt in Hull, where But lavish hospitality, visits, persuasions, purges, the Council is defying privatisation and refusing and the offer of three seats on the promised to foot the bill for the poisoned-tongue consult- Housing Association changed their mind. The ants. “tenants’ friend” adviser, TP21 agreed that pri- North East Lincs Council spent £343,700 vatisation wasn’t necessary and that tenants pre-ballot to promote stock transfer, £390,300 were perfectly happy but came out saying “pri- after it. It now has to pay £1.5 million over three vatise anyway”. years from the General Fund for services previ- The ODPM says tenants should hear both ously attributed to the HRA. Shoreline gets gov- sides of the argument. In North East Lincs the ernment ‘gap’ funding of up to £17 million, Council painted a glowing picture of the not-yet increased from an initial £6 million because the existent Housing Association as bringer of requirement that they show improving perform- model homes and gardens and orderly safe sus- ance as a landlord has now been abolished. Per- tainable communities. On the other hand, they haps the waste of all this public money to bring said we, the Council are crap. They reinforced in small amounts of more costly private sector that message with a huge glossy brochure and investment is par for the privatisation course.
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