‘Transparency’ Plans Spark Debt Warning

Ministers’ plans to make housing associations publish details of all spending over £500 risks pushing their £40 billion private debt portfolio onto the public sector balance sheet. The warning came from housing association chiefs after it was revealed last month how access to the £1.9 billion affordable housing grant pot could become conditional on bidders’ ‘transparency’.
Associations are worried the move would threaten their classification as private sector organisations. This would see associations’ debt transferred to the public sector balance sheet - a figure of £40 billion according to TSA figures for 2009. Association heads are also concerned that revealing their expenditure could hamper their ability to compete with private house builders. The government plans to restrict its transparency demand to charities, Inside Housing has learned. This would catch most associations, but not private developers. Read more on Inside Housing.