HCA fate in doubt as £700m frozen
May 21st, 2010
This is the best news of the year. A lot of very questionable housing schemes have been given Kickstart funding regardless of their merits and the opinion of CABE. Now comes the news that that HCA that is funding so many of them is in financial difficulties.
Funding for Kickstart and Pathfinder in doubt as HCA enters talks with coalition over its future
All spending by the Housing and Communities Agency was put on hold this week as the quango entered “intense negotiations” with ministers and officials over budget cuts.
A source at the HCA said the body, which has about £700m of funding for construction waiting to be signed off, was examining “all uncommitted budgets” to try to identify savings.
It is thought likely the body will be expected to contribute to the £6bn of savings to be set out by chancellor George Osborne on Monday. It has a total budget of £6.1bn for 2010/11.
The future of the agency in its current form is also understood to be in doubt; housing minister Grant Shapps criticised it when he was in opposition.
In addition, the Treasury confirmed this week that the review of all spending decisions made since 1 January extended to quangos, meaning a raft of grant allocations made by the agency could be re-examined.
https://www.building.co.uk/story.asp?storycode=3163831
Please note the last line quoted above. This means that even housing schemes granted permission and recently funded may be recalled.
Wornington Green it’s time to pray.