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Chapter One - Introduction the Focus of This Study

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Chapter One - Introduction the Focus of This Study THE DEVELOPMENT AND OPERATION OF LARGE SCALE VOLUNTARY TRANSFER ASSOCIATIONS 1988 – 1999 ANTHONY DAVID LEE PHD THESIS DEPARTMENT OF SOCIAL POLICY LONDON SCHOOL OF ECONOMICS 2002 Abstract Page i This thesis examines the development by local authorities of alternative models of ownership of public housing, focusing on large scale voluntary transfers (LSVTs) to specially created housing associations. I attempt to place stock transfer within the wider policy context of changes in the State’s role in the provision of services; and changes in organisational development, reflected in transfer structures; and the wider shift in responsibility for the delivery of public services to the private sector. I examine theories that explain the development of the State’s role in housing and discuss their relationship to LSVT. As discussions involving ‘the State’ must recognise the different interests and motivations of Central and local government, I examine action taken to promote and achieve stock transfer by local authorities and central government. The research method adopted to achieve my aims includes both analysis of existing data and the collection of new data through a sample survey of twenty LSVT associations. I approached the research in five stages: background research – including reviewing literature and examining the legal and regulatory framework for LSVT; identifying the characteristics of early LSVT associations; selecting a sample of twenty selected associations for in-depth survey; conducting in-depth interviews with the twenty associations; analysing and tabulating the data collected and drawing conclusions. The survey focuses on staff perceptions of the reasons for transfer and why politicians and tenants accepted the change; organisational and management change brought about by the new landlords; and the changes brought about by private sector involvement, including new personnel brought in to help run the organisations and the influence of private funders. I attempt to draw key conclusions about LSVT associations from the evidence presented. Finally, I examine how early LSVTs paved the way for a wider stock transfer programme, including transfers by inner-urban authorities and large city councils. I argue that while LSVT may have been developed in response to the financial pressure upon local authorities from the early 1980s onwards, the process has created a new style of business orientated social landlord. Contents Page ii Abstract ......................................................................................................................i Contents .....................................................................................................................ii Tables and figures ......................................................................................................ix Acknowledgements....................................................................................................xiii CHAPTER ONE - INTRODUCTION THE FOCUS OF THIS STUDY................................................................................1 Why it is important to examine LSVT associations.......................................1 The aims of this thesis................................................................................................7 Research Methodology ..................................................................................8 Stages of research development.........................................................8 Developing the study approach..........................................................9 Stage 1: Background research............................................................9 Stage 2: Identifying the characteristics of the first 51 LSVT associations ........................................................................................9 Stage 3: Survey of twenty LSVT associations...................................10 Stage 4: In-depth interviews...............................................................11 Stage 5: Data analysis ........................................................................12 The Structure of the thesis..........................................................................................13 CHAPTER TWO – PROVIDING A FRAMEWORK FOR ANALYSING STOCK TRANSFER INTRODUCTION .....................................................................................................15 UNDERSTANDING THE ROLE OF THE STATE.................................................16 The rational model .........................................................................................17 Marxist rejection of the idea of the benevolent state .....................................17 Structures of housing provision .....................................................................18 1. EXPLAINING THE STATE’S ATTEMPTS TO WITHDRAW FROM DIRECT PROVISION OF HOUSING......................................................................19 Stages of development of housing policy systems.....................................................19 The fourth stage of housing policy development in the UK ..........................20 Fiscal crises ................................................................................................................22 Re-invention of the role of Government ........................................................22 Stock transfer and the changing role of Government in housing provision...23 Fiscal crisis or reorientation of housing expenditure? ...................................24 Central-local relations ................................................................................................26 2. DOES ORGANISATIONAL CHANGE AND DEVELOPMENT HELP TO EXPLAIN STOCK TRANSFERS? ...........................................................................29 Scale of housing provision.........................................................................................30 Why growth leads to break-up .......................................................................32 Mass scale, incentives and producer interests............................................................32 Devolving control to tenants ..........................................................................34 Arm’s length ownership and public sector management ...........................................35 Public sector management ethos ....................................................................37 Management or administration ......................................................................38 Organisational culture ................................................................................................39 Organisational culture in housing and local government...............................40 Seeking excellence in service provision ....................................................................41 Contents Page iii 3. LSVT AND SHIFTING THE BALANCE BETWEEN PUBLIC AND PRIVATE SECTORS ................................................................................................43 Background: Privatisation and the ‘New Right’ ........................................................44 Rolling back the State ....................................................................................45 The politics of privatisation ...........................................................................46 Privatisation in practice: Right to Buy.......................................................................47 Quasi privatisation and competition – Is LSVT really ‘privatisation’? .....................49 The wider objectives of privatisation and LSVT ...........................................49 User consultation through ballots...................................................................50 Shareholding members...................................................................................50 The ambiguous status of RSLs.......................................................................50 How LSVT is different from other shifts in the role of the public and private sectors..........................................................................................51 SUMMARY AND CONCLUSIONS ........................................................................55 CHAPTER THREE – CENTRAL GOVERNMENT’S INVOLVEMENT IN STOCK TRANSFER INTRODUCTION .....................................................................................................58 1. THE DEVELOPMENT OF CENTRAL GOVERNMENT’S INVOLVEMENT IN STOCK TRANSFER..............................................................58 The Review of cooperatives (1976) ...............................................................60 Difficult to let estates (1981) .........................................................................61 Estate Action (1985) ......................................................................................63 Housing Act 1985 ..........................................................................................63 Housing Action Trusts (1988)........................................................................63 Tenants Choice (1988) ...................................................................................66 Estates Renewal Challenge Fund (1995) .......................................................68 Overhanging HRA debt (1999)......................................................................69 Summary ....................................................................................................................69 2. WHY CENTRAL GOVERNMENT
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