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Local homes pledge 'is unlawful' Local homes pledge 'is unlawful'
(10 minutes later)
Equality legislation would torpedo plans to give local people greater priority on waiting lists for council housing, the Conservatives have warned.Equality legislation would torpedo plans to give local people greater priority on waiting lists for council housing, the Conservatives have warned.
The prime minister has told MPs he wants to allow councils to give additional preference to locals.The prime minister has told MPs he wants to allow councils to give additional preference to locals.
But Shadow Housing Minister Grant Shapps said the measure was a "sham" as it would be illegal under existing law and the forthcoming Equality Bill.But Shadow Housing Minister Grant Shapps said the measure was a "sham" as it would be illegal under existing law and the forthcoming Equality Bill.
The funding of a £1.5bn building programme has also been questioned.The funding of a £1.5bn building programme has also been questioned.
Details of the plans are due to be spelled out by housing minister John Healey, in a speech in Harrogate.Details of the plans are due to be spelled out by housing minister John Healey, in a speech in Harrogate.
'Unable to deliver''Unable to deliver'
On Monday, Gordon Brown pledged to "reform social housing allocation - enabling local authorities to give more priority to local people whose names have been on waiting lists for far too long". On Monday Gordon Brown pledged to "reform social housing allocation - enabling local authorities to give more priority to local people whose names have been on waiting lists for far too long".
The announcement was seen, in part, as a response to the growth in a few traditional Labour areas of BNP support.The announcement was seen, in part, as a response to the growth in a few traditional Labour areas of BNP support.
But Mr Shapps said it would be scuppered by a new duty to tackle socio-economic disadvantage when making "strategic decisions" included in the Equality Bill, due to be piloted by Commons leader Harriet Harman.But Mr Shapps said it would be scuppered by a new duty to tackle socio-economic disadvantage when making "strategic decisions" included in the Equality Bill, due to be piloted by Commons leader Harriet Harman.
He added that existing law also required councils to give "reasonable preference" to the homeless, people in overcrowded or unsatisfactory housing, and those with welfare or medical problems.
We are cutting off our nose to spite our face Austin Mitchell MP Mortgage plan helps six familiesWe are cutting off our nose to spite our face Austin Mitchell MP Mortgage plan helps six families
He added that existing law also required councils to give "reasonable preference" to the homeless, people in overcrowded or unsatisfactory housing, and those with welfare or medical problems.
Mr Shapps said Mr Brown's remarks were merely "spin" which had been "pitched at Labour's disillusioned core vote".Mr Shapps said Mr Brown's remarks were merely "spin" which had been "pitched at Labour's disillusioned core vote".
He added: "Under existing legislation and Harman's new equality law, local people will not have priority for local homes.He added: "Under existing legislation and Harman's new equality law, local people will not have priority for local homes.
"Housing waiting list policies need reform and we need more affordable homes. But Labour are unable to deliver the change we need.""Housing waiting list policies need reform and we need more affordable homes. But Labour are unable to deliver the change we need."
Meanwhile, Austin Mitchell, who chairs the all-party group on council housing, has warned that money for improving existing council houses must not be diverted to pay for 20,000 new homes promised by Gordon Brown. Liberal Democrat spokeswoman Sarah Teather said Downing Street's "desperation for headlines" meant they were "robbing Peter to pay Paul".
The Department for Communities and Local Government (DCLG) has been told to find half of the cost and has refused to rule out taking some from its Decent Homes Initiative. She added: "We urgently need to build more social homes but cutting the Decent Homes budget is the politics of illusion. We need a real injection of finance into social housing."
Underspends in other Whitehall departments are to be used to pay for the rest of the cost of building the new homes, which was a key part of a raft of new policies announced on Monday, seen as an attempt to relaunch the government. Row denied
The Times reported the DCLG had refused to accept it would foot half the bill - but Downing Street has said reports of a row over where the money will come from are "simply untrue" and there was an agreement. Meanwhile, Austin Mitchell, who chairs the all-party group on council housing, has warned that money for improving existing council houses must not be diverted to pay for 20,000 extra new homes promised by Gordon Brown.
But a spokesman said the DCLG had still to finalise the details of how this money was to be "re-prioritised" from within its budget. The Department for Communities and Local Government (DCLG) has been told to find half of the £1.5bn cost and has refused to rule out taking some from its Decent Homes Initiative.
The DCLG also said that there was no disagreement with Downing Street, although no single programme had been identified for cuts to pay for the homes.
A further £750m is due to come from under spending by other government departments, including health and the Home Office.
Schools Secretary Ed Balls confirmed that £200m was being transferred from his department's budget to the DCLG to help pay for new homes.
He told the BBC Radio 4 Today programme it would come from a £400m reserve set aside in case private firms did not want to engage in private finance initiatives during the recession.
He said it now appeared that would not be needed.
'Not happy'
A DCLG spokesman denied any rift with Number 10 over the funding but said it was not yet ready to announce exactly where it would find the money.
He refused to rule out diverting cash earmarked for bringing all council and social housing up to scratch under the Decent Homes initiative.
Mr Mitchell said: "I am not happy at all that money will be transferred.Mr Mitchell said: "I am not happy at all that money will be transferred.
"The Decent Homes Initiative is an effort to meet the manifesto commitment of 2005 to make every council house and social house a decent house."The Decent Homes Initiative is an effort to meet the manifesto commitment of 2005 to make every council house and social house a decent house.
"Councils have been so squeezed financially that they are not able to complete the programme."Councils have been so squeezed financially that they are not able to complete the programme.
"We are cutting off our nose to spite our face.""We are cutting off our nose to spite our face."
Right-to-buy 'Re-prioritised'
Housing minister John Healey will explain to council leaders the outcome of a council housing finance review, which could see councils returning to large-scale home building. Underspends in other Whitehall departments are to be used to pay for the rest of the cost of building the new homes, which was a key part of a raft of new policies announced on Monday, seen as an attempt to relaunch the government.
Mr Brown said the government was consulting on whether to allow councils to keep all the money raised from council house sales and rent. The Times reported the DCLG had refused to accept it would foot half the bill - but Downing Street has said reports of a row over where the money will come from are "simply untrue" and there was an agreement.
The National Housing Federation, which represents housing associations in England, has welcomed the extra investment but pointed out only 4% of its properties were let to non-UK residents last year. But a spokesman said the DCLG had still to finalise the details of how this money was to be "re-prioritised" from within its budget.
Currently, council tenants' rent and proceeds from right-to-buy sales go into a national pot for redistribution. A DCLG spokesman denied any rift with Number 10 over the funding but said it was not yet ready to announce exactly where it would find the money.
Some councils get money back while others have to pay a negative subsidy to the government. If they were to keep the money, councils may be able to build and repair more homes. A further £750m is due to come from under spending by other government departments, including health and the Home Office.
In the past two decades, very few homes have been built by councils as housing associations have been the main providers of social housing. Housing minister John Healey will explain to council leaders later the outcome of a council housing finance review.
Mr Brown told MPs on Monday the government was consulting on whether to allow councils to keep all the money raised from council house sales and rent.
BBC local government correspondent John Andrew said he did not expect a return to the kind of mass council house building seen in the 1950s and 1960s.BBC local government correspondent John Andrew said he did not expect a return to the kind of mass council house building seen in the 1950s and 1960s.
But he said it would go some way to meeting the huge unmet demand for social housing as the number on housing waiting lists approaches five million.But he said it would go some way to meeting the huge unmet demand for social housing as the number on housing waiting lists approaches five million.