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The Mayor of London Boris Johnson and London Councils have yesterday put forward plans for sweeping changes which could see London boroughs taking greater control of their housing budgets, as part of a proposed devolution package from Whitehall to London.

Together the Mayor and London Councils have released 'A Framework for Devolved Delivery', which would give boroughs greater autonomy over housing budgets, place them at the forefront of negotiations with developers and give them more responsibility to ensure the needs of their local communities are being addressed.

By signing up to a voluntary Devolved Delivery Agreement, participating boroughs would have an agreed indicative housing budget set for the duration of the spending round to help them address their housing and regeneration priorities. In turn, a borough would commit to making better use of resources, deliver more affordable housing and contribute to the delivery of the London Housing Strategy. The Mayor is already more than half way towards delivering 50,000 affordable homes.

The Homes and Communities Agency (HCA) is responsible for allocating more than 80 per cent of the housing funding for London. Under devolved delivery, the Mayor and the London Housing Board – which includes borough representatives – will agree an indicative budget for boroughs, allowing them to allocate this funding according to London-wide and individual priorities.

In a letter to all London boroughs yesterday, the Mayor and the chairman of London Councils, Mayor Jules Pipe, encouraged boroughs to comment on the plans put forward in the framework paper, and invited leaders to express an interest in entering into a Devolved Delivery Agreement.

The Mayor of London Boris Johnson said:

'I firmly believe we should empower London’s boroughs so that more decisions are taken directly by those in the communities they affect. I hope boroughs across the capital will consider the proposals we have announced today. I’m inviting them to enter into the devolution debate so that together, we can find the best way to unlock London’s housing potential, deliver more quality affordable housing and make sure we achieve our goal of halving serious overcrowding.'

Mayor Jules Pipe, Chair of London Councils, said:

'Boroughs are firmly of the view that decisions about how housing budgets should be spent are best placed in the hands of boroughs, who understand the complex needs of their local communities. This framework is a good example of London’s local and regional government coming together to develop and deliver an innovative approach to devolution on an issue which has a huge impact on Londoners across the capital.'

'By the Mayor and the boroughs working together we will be able to have a more efficient, flexible and accountable investment process capable of responding to London’s housing needs.'

David Lunts, London director of the HCA, said:

'The HCA is working closely with London boroughs to tailor new housing and regeneration investment to local needs. This initiative is a logical next step and we look forward to working with the Mayor and the boroughs to make it happen.'

Devolved Delivery Agreements would be entirely voluntary and boroughs can choose to participate but are not required to do so. It is hoped this approach will avoid the trap of the agreements becoming watered down pacts that have been enforced upon local authorities regardless of their capacity or enthusiasm for devolved housing delivery.

In return for signing up to an agreement, the boroughs would be required to ensure they have in place housing policies that meet the objectives of the London Housing Strategy, and agree a broad set of outcomes with the Mayor that ensures both London-wide and local housing needs are met.

The consultation follows discussions between the GLA, London Councils, the Homes and Communities Agency (HCA) and the Department of Communities and Local Government, on the devolution of the HCA’s functions in the capital to London government. It is expected that this will be confirmed in legislation to be introduced by ministers in the autumn.

MEDIA ENQUIRIES: Press information is available from Richard Brookes or Elizabeth Lee at the Mayor’s Press Office on 020 7983 6550 or 4713 or economicdesk@london.gov.uk (not for publication)

PUBLIC/NON-MEDIA ENQUIRIES: Call the Public Liaison Unit at the Greater London Authority on 020 7983 4100
DUTY PRESS OFFICER: For out-of-hours media enquiries, please call 020 7983 4000.

Homes and Communities Agency: Judith Hewitt on 0207 633 3484 or judith.hewitt@hca.gsx.gov.uk.

London Councils: Noella Bello Castro on 0207 7943 9842 or noella.bellocastro@londoncouncils.gov.uk.

Notes to editors:

1. The framework has emerged from London Councils’ consultation with boroughs and a pilot programme initiated by the Mayor and commissioned by the London Board. This pilot involved three London Boroughs – Croydon, Hackney and Westminster, and was led by a steering group chaired by the Mayor’s housing advisor, and which included London Councils, CLG, HCA, the LDA and the G15 group of leading London housing associations. For a copy of the embargoed report, please email Elizabeth.lee@london.gov.uk, writing Devolved Delivery in the subject line.

2. London Boroughs have been invited to comment on the framework and submit expressions of interest if they wish to further explore the possibility of entering into a Devolved Delivery Agreement. Responses must be sent to the GLA by October 1.

3. The next stage in devolved delivery will be for the GLA, London Councils and the HCA to enter into more detailed negotiations with the boroughs that have expressed an interest in entering into a Devolved Delivery Agreement. This will be intrinsically linked with the development of a Borough Investment Agreement.

4. The intention is to have Devolved Delivery Agreements in place for participating boroughs for the start of the next investment round in April 2011.

5. Those boroughs that choose not to participate will continue to receive their housing allocation under the current system, with existing arrangements with regard to funding housing investment continuing unchanged.