DCN: RISING COSTS OF HOMELESSNESS MUST BE REFLECTED IN FUTURE FUNDING FORMULA

Rising levels of homelessness need to be reflected in local government funding reforms after more than half of district councils reported an increase in requests for help dealing with the issue in the first six months of new housing legislation.

As the housing and planning authorities, districts are at the forefront of preventing and relieving homelessness. However, only one in five districts say that government funding to support the implementation of new statutory duties under the Homelessness Reduction Act (HRA) is sufficient, while over two-thirds (69 per cent) have seen an increase in the visible signs of homelessness in their areas, according to the survey of DCN members.

The survey has been carried out to find out how district councils have been impacted by the first six months since the implementation of the HRA, which places a duty on councils to assess the housing and support needs of every client who is homeless or threatened with homelessness and to provide them with a Personalised Housing Plan.

Districts can and want to do more to support their most vulnerable residents, so are urging Government to ensure that the rising costs of tackling homelessness are reflected in the fair funding formula which is due to be consulted on shortly through the fair funding review.

DCN is further calling for:

• Extra funding on top of the initial HRA implementation funding, so that councils can continue to secure accommodation for homeless people
• The HRA cap to be lifted as soon as possible, together with more infrastructure funding, so councils can build more social housing
• Greater financial flexibilities for non-stock-holding authorities to borrow to build more homes
• A review of current housing payment processes within Universal Credit which remove the security of direct rent payments to private landlords who need greater reassurance that the tenancies of benefit claimants or people with previous rent arrears will be successful
• An early review of the HRA administration process to be streamlined as it is more time-consuming than the previous homelessness duties
• Urgent action regarding the increasing tenancy fees set by letting agents in order to secure accommodation

DCN Chairman Cllr John Fuller said:

“Everyone deserves a safe and affordable home. We welcome the Homelessness Reduction Act, but since April 2018, over half of district councils have seen an increase in requests for homeless advice and assistance, with an increase of more than 100 per cent in some areas during this six-month period.

“The ongoing costs for new HRA duties far outweigh the initial funding – which isn’t enough on its own to address the lack of housing supply or the affordability issues affecting people in need – and can’t be sustained in the long-term. Providing additional, sustainable funding beyond 2019/20 through the funding formula will allow Districts to continue to support homeless people or those at risk of becoming homeless over a longer time period.

“The thresholds set for various support services are now so high that they are predominantly crisis-focused and are less responsive to addressing the low level issues that lead to homelessness, which coupled with funding cuts to council budgets, impedes the work to prevent it and can lead to people becoming trapped in a cycle of homelessness.

“The announcement on lifting of the HRA cap was well-received by Districts but this needs to be implemented as soon as possible so councils can build more affordable homes which are badly needed to help provide long term solutions to homelessness.

“District councils believe multi-agency work needs to be strengthened to target the various factors that have either caused people to become homeless or is preventing them from being rehoused because unless the Government tackles the root causes of homelessness then there is a risk that initiatives will not remain successful in the long term.”

ENDS

District Councils’ Network media office, 020 7664 3333

DCN: ALL RIGHT TO BUY RECEIPTS SHOULD HAVE LONGER TIMEFRAME

In its submission to a government consultation on the use of Receipts from Right to Buy Sales, Cllr Sharon Taylor, DCN Finance Lead, said:

“Having two sets of time limits for use of Right to Buy receipts for the same purpose is illogical, particularly where DCN, as the planning and housing authorities, share government’s ambition to increase house building.

“We support the time limit for spending existing Right to Buy receipts being extended from three years to five years so that councils can maximise the benefits of the housing borrowing cap being scrapped, to build much needed homes in their local areas.

“However, this proposal must be extended to the use of future receipts so that councils can ensure that they achieve best value. There is no logical reason why future receipts should be subject to a shorter time frame compared to existing receipts.

“Furthermore, the time limit for complex and high value regeneration schemes should be extended to seven years to avoid deterring major housing delivery projects.

“If councils are to play a full part in delivering the Government’s ambitions for social housing and to increase opportunities for families, they need to be able to keep 100 per cent of Receipts.”

 

 

ENDS

District Councils’ Network media office, 020 7664 3333

DCN RESPONDS TO ANNOUNCEMENT ON LIFTING THE HOUSING BORROWING CAP

Responding to an announcement today by Theresa May that the housing borrowing cap will be lifted, Cllr John Fuller, Chairman of the District Councils’ Network (DCN), said:

“The Government expects district councils, as the planning and housing authorities, to manage their local housing markets to benefit people at all stages of their lives.

“Finally the Government has recognised that councils need the fiscal tools to manage their housing markets by lifting the housing borrowing cap. We welcome this important new power which the DCN has long called for.

“Many councils with extensive housing potential, often surrounding the largest cities, have transferred their own stock to registered social landlords and therefore don’t have housing revenue accounts. These Districts should not miss out on the opportunity to build the homes this country badly needs.”

 

ENDS

District Councils’ Network media office, 020 7664 3333

DCN CALLS FOR MORE FREEDOMS AND FUNDING REASSURANCE IN SUBMISSION TO AUTUMN BUDGET

Following the DCN’s submission to the Autumn Budget, DCN Finance Lead Cllr Sharon Taylor said:

“Districts are now facing increasingly stark funding challenges that threaten the vital services their communities rely on. This is a critical Budget for district councils who now need long-term financial reassurance and greater freedoms and reward.

“Districts have punched above their weight in terms of savings made through shared services but have also faced the biggest reduction in their spending power since 2015 compared to other types of councils.

“This steady decline must be reversed, through the Fair Funding Review and greater flexibilities for districts to tackle unfairness in the system and an increase in spending power in the next spending review period.

“This means councils should be able to set their own level of council tax without the need for costly referendums; lift the borrowing cap for councils with housing stock; have greater flexibility on Right to Buy receipts with the New Homes Bonus baseline scrapped; and be allowed to recover the full costs of services and set all licensing and planning fees locally.

“Districts should also be allowed to set a 3 per cent prevention precept which could generate £42 million in 2019/20 to build on their successful work reducing demand on crisis-hit adult social care and the NHS.

“This Budget is a vital opportunity to recognise district councils for delivering better lives and stronger economies by encouraging growth and recognising that Districts cannot continue to provide essential local services without sufficient and sustainable funding.”

NOTES TO EDITORS

DCN’s full submission to the Autumn Budget can be read here.

 

ENDS

District Councils’ Network media office, 020 7664 3333

DCN RESPONDS TO LGA ADULT SOCIAL CARE GREEN PAPER

Responding to the Local Government Association’s adult social care green paper consultation, which ends today, Cllr Isobel Darby, DCN Member Lead for Quality of Life, said:

“Action is urgently needed to address the adult social care crisis, the single largest problem facing local government services and their financial sustainability.

“As the housing and planning authorities, district councils already play a crucial prevention role in helping to improve people’s health and wellbeing, which significantly reduces the demands and costs on adult social care and the NHS.

“The preventative role of councils must be better recognised and funded, alongside the need for a long term sustainable funding solution to adult social care instead of simply recycling existing funding within local government, which will never meet the future cost pressures of an ageing population.”

NOTES TO EDITORS

• DCN’s full submission to the LGA’s adult social care green paper consultation can be read here.

 

ENDS

District Councils’ Network media office, 020 7664 3333

 DCN: REWARD, DON’T PUNISH, DISTRICTS IN FINANCE SETTLEMENT

District councils should be rewarded and not punished for delivering more homes whilst facing the biggest cut in their spending power than any other type of council, DCN urged today.

In its response to the 2019/20 Local Government Finance Settlement Technical Consultation, district council leaders argue that the New Homes Bonus (NHB) baseline should be scrapped.

DCN, which represents 200 district councils across England, is also calling for decisions on council tax to be set locally – not by nationally set referendum principles – and for greater flexibility on local revenue-raising powers.

If Government continues to set referendum principles, DCN is further calling for a 3 per cent prevention precept to reflect the significant role that Districts play in prevention and reducing demand on adult social care and primary health services, ending the imbalance on council tax in district/county areas. This precept could raise an extra £42 million for district councils to help keep people from needing to access acute social care and the NHS by reducing demand for these services. In addition the existing £5 limit on district council precepts must be raised to £10.

District councils have seen a near 14 per cent cut in their spending power – far more than other types of councils who have seen an increase – during the current spending review period.

As the housing and planning authorities, Districts fully supports the NHB as a powerful incentive to deliver housing and economic growth, but believe plans to increase the NHB baseline is a “perverse” incentive by reducing the reward for those local communities that have embraced additional new homes. The introduction of the 0.4 per cent baseline threshold for the NHB removed more than £70 million in funding from district councils in 2017/18 and this could increase if the baseline if further extended.

DCN is also concerned that any changes of approach to NHB beyond 2019/20 risks further uncertainty when Fair Funding and 75% Business Rates Retention comes into force.

It is calling for further discussions with government prior to formal consultation.

Cllr Sharon Taylor, DCN Member Board Lead for Sustainable Finance, said:

“Of all councils, Districts have had their core spending power reduced the most. Due to the demands on the social care system in particular, it is crucial that the system is not further destabilised by more reductions in funding to district councils that would undermine their ability to do work on prevention that saves money for both social care and the NHS.

“New Homes Bonus has been a powerful driver for housing growth, but increasing the baseline would be a perverse incentive because it would penalise the very councils which have succeeded in meeting Government’s housing targets. We are against the proposal to increase the baseline, which instead should be scrapped.

“It is paramount for Districts to be given more financial flexibilities that will help them not only to deliver on both their prevention role, but also further succeed in delivering new homes to tackle the housing crisis, providing homes people desperately need.

“As highlighted by the APPG inquiry into District Council Finances, further measures are needed to empower Districts to help achieve the Government’s housing targets, such as lifting the borrowing cap and allowing councils to retain Right to Buy receipts for much longer.”

NOTES TO EDITOR

• The District Councils’ Network (DCN) is a cross-party member led network of 200 district councils. We are a Special Interest Group of the Local Government Association (LGA), and provide a single voice for district councils within the LGA.
• District councils in England deliver 86 out of 137 essential local government services to over 22 million people – 40 per cent of the population – and cover 68 per cent of the country by area.
• DCN’s full response to the Local Government Finance Settlement Technical Consultation is available here.

ENDS

District Councils’ Network media office, 020 7664 3333

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DCN RESPONDS TO SOCIAL HOUSING GREEN PAPER

Responding to the Government’s Social Housing Green Paper, Cllr Tom Beattie, Vice Chairman of the District Councils’ Network, said:

“As the housing authorities, district councils know how essential social housing is to meet the various needs of our communities and this consultation is a positive step towards improving this issue.

“Whilst we are pleased that the Government has recognised the need for greater flexibility on the use of Right to Buy receipts which Districts have long called for, the timeframe for the use of future receipts must be 5 years in all cases, rather than just for existing receipts. We continue to call for councils to be able to retain 100 per cent of receipts from homes sold to help councils provide more affordable homes more quickly.

“We welcome the measures in the consultation to consider providing longer term tenancies which give people more security in their rented homes to help prevent the ‘merry-go-round’ of people having to move from their homes unnecessarily.

“We look forward to working with Government on this consultation and further measures to help Districts provide more social housing that is desperately needed as part of initiatives to tackle the housing crisis to empower people to live in affordable and good quality homes securely on their own terms.”

ENDS

District Councils’ Network media office, 020 7664 3333

DCN RESPONDS TO GOVERNMENT’S ROUGH SLEEPING STRATEGY

Responding to today’s publication of the Government’s Rough Sleeping Strategy, Cllr Tom Beattie, Vice Chairman of the District Councils’ Network, said:

“As the housing authorities, district councils are at the forefront of preventing and tackling rough sleeping. This strategy will help Districts tackle the growing problem of homelessness and we look forward to receiving more detail on how the £100 million funding will be allocated.

“Councils and their partners need to be provided with the resources to continue to prevent and tackle rough sleeping. Solutions developed at a local level, are best placed to succeed and we welcome government’s recognition that there is no one-size-fits-all approach to tackling the issue of rough sleeping. We hope this means Districts will have the right flexibilities to address individual issues.

“Key to preventing rough sleeping in the long-term is addressing the lack of affordable, suitable accommodation and social housing on the market. We have long-called for further powers and flexibilities to allow us to deliver the right housing to best meet the needs of our communities.

“While further funding is welcome, any sustainable solution must recognise the crucial issue of housing provision and go further to empower councils to accommodate growing communities, ease pressures on public services and tackle the housing crisis.”

ENDS

District Councils’ Network media office, 020 7664 3333

DCN RESPONDS TO THE REVISED NATIONAL PLANNING POLICY FRAMEWORK

Responding to the Government’s changes to the National Planning Policy Framework, Cllr Gillian Brown, DCN Planning spokesperson, said:

“England’s 201 district councils are committed to delivering the housing that this country and our communities desperately need throughout two thirds of the country.

“Whilst the revised NPPF provides some much needed clarity on local plan production and introduces greater transparency in the planning system, it should go even further, to empower local authorities with the powers they need to drive housing growth.

“If the Government expects councils to manage their local housing markets then it’s essential that councils are supplied with the need the practical, legal and financial tools to do it.

“National policies will always find it difficult to reflect local circumstances, so we look forward to the publication of the Letwin review later this year, which we hope will introduce a rebalancing of negotiating powers between housing authorities and developers. This is needed alongside the provision of greater fiscal freedoms, which would ensure that the houses we plan for are actually delivered.”

ENDS

District Councils’ Network media office, 020 7664 3333