Cash-strapped council pulls out of homes funding plan
SCHEME WAS TO PROVIDE 114 PROPERTIES IN BELPER
A CASH-strapped Derbyshire council has pulled out of funding plans for more than 100 affordable homes.
The scheme is for 114 homes built in Derwent Street, Belper.
Amber Valley Borough Council for two years has planned to plough £600,000 into the scheme, to ensure its delivery and provide muchneeded affordable housing.
However, due to the council’s budget issues, which leave it within reach of effective bankruptcy, its Labour leader Cllr Chris EmmasWilliams has decided to ditch the plans.
In a formal executive decision notice, Cllr Emmas-Williams said: “Although the council needs more affordable housing, it also needs to address a significant financial deficit and consequently cannot invest in a scheme that does not provide a financial return.”
It is believed the council would have been teaming up with Nottingham Community Housing Association to push the would-be scheme forward.
Cllr Kevin Buttery, leader of the council’s opposition Conservative Group, said the affordable housing scheme would have generated £160,000 a year in council tax – to be spread among Derbyshire authorities.
He suggests Homes England, a Government body which funds affordable housing, is also looking to support the potential Derwent Street scheme. He said: “This appears to be a long-standing scheme with Nottingham Community Housing Association, which the council had previously agreed to support.
“There are scant details revealed as to why the leader of the council has suddenly decided to withdraw £600,000 of funding, which certainly needs to be explained.
“A decision such as this, to back out of a scheme at the last minute, can only damage the council’s reputation, which leads to a loss of confidence by the housing association sector as well as Homes England, who were supportive.
“We may now have 114 badlyneeded affordable homes lost to the borough, which would have generated in the region of £160,000, annually, in council tax.”
Cllr Emmas-Williams said the retraction of funds was required in order to balance its budget – a deficit he says the Labour group “inherited”.
He said: “We believe that the free gifting of money directly to housing associations is not the best way to ensure delivery of affordable housing while protecting the public interest.
“We can maximise the affordable housing provision with shared ownership schemes that maintain the control of the assets within the council.
“People can rest assured that this £600,000 earmarked for affordable housing will indeed be invested in affordable housing, that will allow a sustainable return for the council.
“This way we both deliver the housing we need, plus contribute to repairing the £2.3 million deficit that we inherited.
“We are sure that the housing association behind the embryonic plans for 114 houses on Derwent Street can still deliver affordable housing there, without this public subsidy.”