To ask the Secretary of State for Transport, Local Government and the Regions what plans he has to permit local authorities to redirect funds originating in their housing revenue accounts to (a) set up arm's length housing management organisations and (b) direct investment in municipally owned housing.
It is a matter for authorities to determine how to use the resources available to them in their housing revenue account. Authorities which are proposing to establish an arm's length organisation (ALMO) to manage their stock may apply for additional resources. If they are successful and meet the necessary standard, those resources are expected to be targeted on investment in the authority's stock. We have provided resources to enable additional investment of £460 million by ALMOs over the next two years.