Lib Dems demand probe into Labour's housing transfer plan

4.27.03pm UTC (GMT +0000) Tue 18th Jul 2006

Lambeth Lib Dems are demanding an immediate investigation into Labour plans to transfer the council's housing stock to a private management company.

The decision to move to an ALMO (arms length management organisation), which would affect an estimated 100,000 people living in Lambeth, is being rushed through without any consultation to meet a July 31 deadline.

The Government Office for London previously approved the council's strategy for meeting the Government's Decent Homes standard by 2010. Now the council, the country's tenth biggest social landlord, is claiming there is a whopping £200m funding gap.Rather than press the Government to provide the council with the necessary resources to meet its target, however, the new Labour administration wants to impose a borough-wide ALMO which comes with no guarantees for extra funding.

Lambeth's council tenants and leaseholders, representing some 40,000 households, have been consistently clear that they would prefer to remain with the Council. Up to now there has been cross-party support for this position.

However, the incoming Labour administration want to break the consensus by demanding a transfer. The Liberal Democrats say that tenants and leaseholders should have the choice to decide for themselves.

"The council now says it doesn't have the resources to meet the Decent Homes target. We need to probe the figures which appear to show the Government providing Lambeth with £60m less than previously agreed," said Lib Dem Housing Spokesperson Cllr Jeremy Clyne. "With Government cuts like that no wonder there is a gap."

At the same time council papers reveal council plans to spend an extra £45m on unexplained "other capital investment" while at the same time the council would actually cut investment in tenants' homes by £12m to £314m.

"How can Lambeth council tenants and leaseholders trust Labour? Before the election they joined other parties in signing up to residents' views on stock transfer. But weeks after the election they've gone back on their promise and are now wanting to impose a transfer on tenants. They haven't even asked tenants for their views.

"Liberal Democrats say that tenants should have a fair choice between ALMOs, stock transfer or simply staying with the council. Labour's decision to go to an ALMO without consulting tenants is a slap in the face for tenants and an insult to their rights to decide for themselves."