Promised repairs and improvements to Lambeth’s dilapidated housing stock may never materialise after the Government pulled the plug on an expected £250m investment.
New kitchens, bathrooms and general repair work to properties run by Lambeth Living were pledged to residents before they voted to transfer management of their properties from the council to the Arms Length Management Organisation (Almo).
Money for the work was supposed to be released by the Government if Lambeth Living achieved a two star rating from the Audit Commission.
But housing ministers have delayed the promised investment by 12 months, sparking fears the money will never materialise if Gordon Brown’s Government loses next year’s general election.
Liberal Democrat councillor, Jeremy Clyne, said: “Tenants have been badly let down through this whole process. There were always warnings that this promised funding would never happen.
"Steve Reed and his Labour administration tricked Lambeth council tenants into voting for the Almo with bogus promises about new kitchens and bathrooms for all.”
But according to Councillor Steve Reed, leader of Lambeth Council, residents will not be impacted by the delayed funding as Lambeth Living’s homes are not due for inspection until 2011 - the result of which will determine if the borough receives funding.
He said: “There’s no change in the situation for Lambeth. These criticisms come from the same Liberals who wouldn’t have bid for the Government funding in the first place.”
Up to 80,000 homes across London will lose out on the delayed funding plans as the Government diverts the cash to build new affordable homes elsewhere in the country.
Coun Reed, who is also London Councils' executive member for housing, has met with representatives from other affected councils, and the GLA, to discuss saving the funding.
A taskforce has been set up to look at the problem, and he has written to housing minister John Healey calling for urgent talks.
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