Prescott denies plans to review council housing transfers
Deputy Prime Minister John Prescott has denied he agreed to review the Government’s policy on council housing transfers, following widespread reports that a review was underway.
He maintains that during negotiations at the Labour Party annual conference in September, he only offered to review the policy – and that the conditions for his offer were not met.
Mr Prescott makes the statement in a letter he faxed to Labour MP Austin Mitchell last night, on the eve of Mr Mitchell’s appearance at the Defend Council Housing conference in London today.
The letter refers to behind-the-scenes negotiations that took place during the annual conference, in which Mr Prescott and others tried to dissuade Labour Party members from moving a motion to allow councils to repair the houses they own – and borrow to do so.
This so-called “fourth option” has always been rejected by Mr Prescott, who has maintained that councils wanting to repair their houses to a “decent” standard must transfer them to an arm’s-length management organisation or housing association, or put them under a private finance initiative.
However, the Labour Party conference voted by around eight-to-one in favour of the motion, and it was understood by many – including Mr Mitchell – that Mr Prescott had promised a review of the Government’s policy.
But in the letter sent to Mr Mitchell, the Deputy Prime Minister says: “The review … was explicitly conditional on the mover of the alternative wording at the Labour Party conference agreeing to withdraw. The mover refused, so I will be taking no further action on this matter.
“There is not and will not be a ‘fourth option’ for providing direct additional funds to local authorities to meet the Decent Homes standard. We continue to believe the strategy we have in place remains the right one for delivering Decent Homes.”
He goes on to say: “Contrary to what you [Mr Mitchell] have said in your letters, I am not involved in any discussions about a ‘fourth option’, and the Government is not looking at any other options for delivering additional resources.”
Local authorities are still expected to complete their “options appraisals” by July next year within the present system, he adds.
Copies of the letter will be sent to council leaders and chief executives in stock-owning authorities.
Reacting to the letter, Mr Mitchell said that the denial is just “bluster”, and maintains Mr Prescott can be made to see “reason”. At a Defend Council Housing conference in London today, Mr Mitchell told the audience the Deputy Prime Minister was behaving in “appalling fashion”.
And later, speaking to reporters, he said: “This is just John’s initial bluster . that’s what John does.”
Mr Prescott was “obviously upset” that those opposed to the housing transfers had put forward proposals that the Treasury could not “find holes in”.
Mr Mitchell added: “He will be amenable to reason.”
