A Framework for Devolved Delivery West London Lead Members for Housing 16 th November 2010 Nigel Minto Head of Sustainable Communities London Councils

Overview Context Budget Setting Options Reaching a Devolved Delivery Agreement Monitoring Questions…

Context 1 Decentralisation and localism Bill –Will be published within next two weeks. –Effective from April 2012 Quangos HRA Housing funding and delivery Housing devolution in London Policy –Delegated Delivery Pilots –Devolving to Deliver Report –Devolved Delivery Framework; –‘New London Settlement’

Context 2 Development and Sign-Off –Devolved Delivery Operational Group –Devolved Delivery Steering Group –EIG –HCA London Board Timing –Borough Investment Agreements due 30 November? –Outline Devolved Delivery Agreement mid-December? –Draft Agreements January? –Final sign-off by HCA London Board March 2011

Budget Setting Options Single City-wide Housing and Regeneration Pot –Negotiated by Mayor, CLG and HMT –Resources in exchange for agreed outcomes –Alignment between local and Mayoral priorities Pan-London Mobility –Will need to sit alongside whatever methodology is selected Two Options –Formulaic A single formula used to allocate notional and indicative budgets –Discursive Budget negotiations based on indicative contribution to City-wide outcomes Resources –Resources likely to be non existant or exceptionally tight in 2011/12

Reaching a Devolved Delivery Agreement Stage One – Foundation –EOI (1 October) –Borough Investment Plan agreed by HCA (End of October) City-wide assessment criteria Referred to EIG on exception basis Stage Two – From BIP to BIA –Borough Investment Agreement (End of November) A schedule of schemes, regeneration and stock investment priorities Commitment to deliver new housing, improve eco standards, mobility Assessed by EIG, makes recommendations to HCA London Board Stage Three – Gateway to DDA –Negotiations between London Board and Boroughs (Dec – Mar 2011) Defining outcomes, budget, responsibilities, monitoring arrangement s Stage Four – Formal Agreement –Single document signed by each party (April 2011)

Monitoring Arrangements Principles –‘Light touch’ ; programme rather than project based –Enables local flexibility, provides City-wide reassurance –Transfer of responsibility, not whole budget Practicalities –Schemes agreed, allocated, delivering; local authorities use IMS –Schemes not agreed; boroughs will need to develop reporting mechanisms –End year flexibility, clawback People –Borough HCA Relationship, Borough Developer Relationship altered –HCA looking at significant cuts, no budget borough identified

Questions… Impact of reduced grant Impact of 80% ‘affordable’ rents? Role of boroughs in shaping London Housing Strategy? Interaction with Review of Council Housing Finance, New Homes Incentive, Housing Benefit Reform? A Strategic Reserve for the Mayor? HCA/LDA role in joint commissioning, London Housing Company? Legal Status of Devolved Delivery Agreement?