* On 24 May reductions were made to the HCA’s programmes of £230m as part of wider efficiency saving imposed on CLG. These were made up of £100m (National Affordable Housing Programme); £50m (Kickstart Round 2); £30m (Gypsy & Traveller Programme); £50m (Housing Market Renewal, subject to consultation).
* As part of the Government’s announcement on the above reductions, it was indicated that Housing Pledge funding for the HCA of £780m was not secure. However, the Treasury also indicated that £170m of funding would be reinvested in the HCA for social rented housing, creating an overall potential shortfall in funding for the Agency of £610m (£780m - £170m = £610m).
* The Government has decided that granting the remaining £610m in full is unaffordable, given the extent of similar commitments across the rest of government. However, the Government has guaranteed that £390m will be available this year, on top of the £170m announced on 24 May 2010. This will be prioritised towards new affordable housing as well as meeting existing commitments on Decent Homes and Mortgage Rescue.
* In total the £780m coupled with £230m in programme cuts, created a total potential shortfall in funding of £1.010 billion. This set against a funding commitment from government of £170m and now a further £390m means that the HCA has a programme reduction in 2010/11 of £450m in total (£230m (as above) plus £220m as per yesterday’s announcement). This reduces the HCA’s capital budget for 2010/11 by around 10 per cent, to £4.11bn.
As a result of the funding settlement, the HCA has confirmed that it will be able to meet existing contractual commitments across all of its programmes. It will also be able to provide funding for those Round 2 Kickstart and LANB schemes approved before 6 April. Details of LANB schemes that are contractually committed and have secured funding, including Nottingham’s Round 2 bid for new build in Bilborough and Bulwell, are available on the HCA website by clicking on the logo below.
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