Funding cut for £1.9bn of affordable housing

Grant Prior 11 years ago
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Affordable housing schemes across the country worth £1.9bn were axed yesterday in the wake of Government spending cuts.

The Department for Communities and Local Government and the Homes and Communities Agency confirmed that 13 planned schemes in the pipeline via the Private Finance Initiative will not go ahead.

But the agency said another 13 housing schemes currently in procurement and worth over £1.2bn will continue to be supported through PFI during the next spending review period.

Another 25 housing schemes under contract will also continue to be supported.

The decision follows a review of housing PFI that could have seen support for all non-contractually committed schemes withdrawn.

HCA chief executive Pat Ritchie said: “I am pleased that despite having to make some tough decisions following the Spending Review, DCLG is able to commit support for these housing PFI schemes which have the potential to make a real difference to local communities.

“At the HCA we will now concentrate on helping Local Authorities maximise the impact of available funding, through our expertise on procurement and other technical services.

“We will also work with those councils which have received disappointing news today, to look at any ways in which their objectives might be supported through a non-PFI route.”

The 13 schemes currently in procurement will now be subject to a further rigorous review of value for money, with the outcome expected in December.

The full list of schemes in procurement which are continuing and the pipeline projects which have been axed:

    Pipeline projects axed

    Local Authority Project
    Birmingham City Council Lyndhurst Estate
    Cheshire East Council and Cheshire West and Chester Council Extra-Care Housing
    Camden London Borough Council Gospel Oak Regeneration
    Cornwall County Council Extra-Care and General Needs
    Hull City Council Orchard Park Estate
    Leeds City Council Lifetime Neighbourhoods
    Manchester City Council Collyhurst Estate
    Northampton Borough Council Eastfields and Thorplands
    Nottingham City Council Meadows Estate
    Portsmouth City Council Somerstown Estate
    Shropshire County Council Extra-Care Housing
    Southwark London Borough Council Aylesbury Estate
    Stoke-on-Trent City Council Suburban Estate

    Projects in procurement under fresh cost review

    Local Authority Project
    Derby City Council Social Rented Housing
    Kent County Council Excellent Homes for All
    Kirklees Metropolitan Borough Council Excellent Homes for Life
    Lambeth London Borough Council Myatts Field North
    Leeds City Council Little London
    Leeds City Council Beeston Hill & Holbeck
    Manchester City Council Brunswick Estate
    North Tyneside Metropolitan Borough Council Older People Homes for the Future
    Oldham Metropolitan Borough Council Gateways to Oldham
    Salford City Council Pendleton Estate
    Stoke-on-Trent City Council Extra-Care Housing
    Wiltshire County Council Social Rented Housing
    Woking Borough Council Priority Homes

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