The Audit Commission warned that councils are not doing enough to prepare their communities for the fall-out from the recession. It said that local authorities in England were now facing the "second wave" of the downturn, as the effects of rising business failures, bankruptcies and unemployment led to deepening social problems.
The Commission argued that while most councils had taken some steps to support local businesses and help vulnerable families, the impact was likely to be "modest" and few were targeting their efforts effectively. It accused councils in some areas - particularly those which had so far escaped the worst effects of the recession - of being "complacent".
The Commission warned that most areas were likely to experience worsening social problems - including domestic violence, alcoholism, drug addiction, and young people unable to find work. Already councils were seeing a rise in demand for benefits, welfare, and debt counselling while the pressure on social care and mental health services was increasing. ,p>There was also growing demand for state school places from families who could no longer afford to educate their children privately, while fly-tipping, abandoned cars, and stray dogs were all on the increase.
At the same time councils were seeing their incomes squeezed, with district councils in particular suffering from a fall off in planning fees and other revenues in the wake of the property market collapse. Already many councils were resorting to recruitment freezes and redundancies - voluntary and compulsory - in an attempt to get their costs down.
The Commission said that so far councils in the West Midlands, Yorkshire and the Humber had been hardest hit by the recession while those in the South West and Eastern England had been least affected.
Most authorities had taken "sensible, low-risk steps" to try to mitigate the effects of the downturn in their areas, but these were expected to have only a limited impact. However, others - particularly those in deprived areas with experience of managing such problems - had produced more ambitious action plans, which the Commission said could be effective but were also risky.
It expressed concern that some councils were investing in programmes to deal with the recession without the backing of "a sound, well-informed plan". It argued that most councils have a clear understanding of the local impact of the recession but having knowledge is not the same as using it - few are targeting their efforts effectively.
The Commission was also critical of the plethora of national government initiatives to try to tackle the recession which had proved to be "complex, inflexible, and hard to track". It highlighted the Government's mortgage rescue scheme, which had attracted 5,000 individual inquiries and 750 applicants - of which just six had proved successful, and suggested that local initiatives could be more effective.
ALMO Shares Expertise with Others
One of the UK's leading ALMOs, Bolton at Home, launched a new consulting service to share its expertise and best practice with other organisations.
Bolton at Home manages approximately 18,500 council-owned properties in the town. In 2005 it became the first housing ALMO in the North-West to be awarded the maximum three stars from an Audit Commission inspection.
The ALMO has since introduced a number of pioneering housing initiatives, including a 'downsize' programme to re-house elderly tenants and the Great Estates regeneration scheme which was shortlisted for a national housing award.
One particularly successful service introduced by the organisation has been its customer inspection model. This involves a 30-strong team of volunteer tenant inspectors who regularly examine the services received by customers to help drive continuous improvements.
Bolton at Home's voluntary customer inspectors have already delivered close to 150 customer 'reality check' inspections and mystery shopping exercises. This has led to direct improvements in housing and environmental standards, customer communications, CCTV and concierge services.
As part of the new consulting service, housing organisations will receive access to a comprehensive customer inspectorate team toolkit, which guides them through the process of setting-up and developing their own inspectorate team.
The consulting service was established in response to increasing enquiries from other housing providers for help setting up their own customer inspection teams and follows successful trials with neighbouring housing organisations.
For more information on Bolton at Home's external business service, contact Gill Tuke on 01204 335645.
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ALMO Marks a First with Ownership Deal
A newly built flagship development - Granville New Homes - was sold by Brent Council to Brent Housing Partnership (BHP), marking a 'first' for a change of ownership arrangement. BHP has become landlord and owner of 155 homes in South Kilburn and is the first Arms Length Management Organisation (ALMO) in the UK to buy property of this scale.
The purchase has changed the shape of BHP's future, and ALMOs generally, whose responsibility would usually be to look after properties on behalf of the council with Brent remaining the landlord. But now BHP owns Granville and is the landlord to the tenants.
The sale of Granville is also a demonstration of the potential value of ALMOs and their councils working together to solve local housing problems. BHP has bought the block as part of a plan agreed with the Council to ensure that the redevelopment of the South Kilburn Estate is not delayed by the credit crunch.
Granville New Homes, which was recently short listed for the Inside Housing Sustainability Award, is the second development of homes to be built in the £1 billion regeneration programme for South Kilburn.
The new homes have been built to the highest quality design and specification with generous space standards, communal landscape gardens, energy saving features, water and refuse recycling facilities, sound and thermal installations to offer comfort for future residents. The development also includes a community facility which provides after school services for local children and other facilities for young and older people.
BHP is also working on a range of other projects which will help the Council meet the housing need in Brent. These include building new homes, buying homes and increasing the size of existing council homes through loft conversions or extensions. They are also supporting the Council's regeneration of South Kilburn by transforming existing blocks of flats through over cladding.
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Photo Identity Scheme Launched for Housing Applicants
A London council is introducing photo identity for anyone applying to become a council tenant, in an innovative scheme to crack down on property fraud involving its 5,500 properties.
New applicants for housing by Harrow Council will have a full-face photograph taken, and that image will be electronically linked to all documents relating to that customer. The photograph will be taken when the initial application is made.
The move is particularly designed to stop issues like illegal sub-letting. While Harrow Council already undertakes a raft of checks on prospective tenants - including documentary proof of identity and address, checks on the Land Registry and Experian credit service and home visits - like others councils, it is not immune to fraud. ,p>Illegal subletting remains an issue, and while estimates are difficult, the Council believes it could affect around 50 properties across its stock.
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Tenants Get Option of Paying Rent by Direct Debit
A Scottish council's 14,000 tenants now have the option of paying their rent by direct debit.
Tenants of The Highland Council have been sent a direct debit mandate and explanatory leaflet with their quarterly rent statements. The Council is eager to make tenants aware of this alternative means of payment, as it is the cheapest way to collect rent.
As long as their payment is in advance, tenants can also pay their rent weekly, monthly, quarterly or yearly at Council service points or at the Post Office, by cash, debit or credit card or by standing order. They can also pay on line via the Council's web site.