ALMO shake-up on the cards

7.02.46am BST (GMT +0100) Thu 29th Jun 2006

Councillor Richard Brett has welcomed proposals for the reorganisation of ALMOs (Arms Length Management Organisations) - the bodies that manage council housing in Leeds.

The executive board will be discussing a report at its meeting on July 5th proposing that tenants should be balloted on two possible options for reorganising the city's ALMOs. These options would combine the current six separate organisations into either one or three new ALMO bodies.

Since their formation the ALMOs have helped deliver £420 million of investment for housing in Leeds which otherwise would not have been available. Their decentralised structure has also increased democratic accountability and tenant involvement in decision making.

However, structural change has become necessary, due in large part to a growing budget deficit run up by the bodies. A report from the accounting firm Price Waterhouse Coopers estimates that Leeds' ALMOs will accumulate a collective deficit of almost £12 million by 2009/10 if they were to carry on operating under current arrangements.

The ALMOs are also managing an ever decreasing stock of housing. Around 5000 less properties are under their management than in 2003 when they were first set up. 2000 of these properties were lost last year alone.

Councillor Richard Brett (Lib Dem, Burmantofts and Richmond Hill), who sits on both the executive board and the board of directors for Leeds South East ALMO said,

"Whilst the ALMOs have achieved a tremendous amount of good since they were established three years ago, it is becoming increasingly clear that their current structure is unsustainable.

"I believe that reducing the number of ALMOs will get the costs of the service under control but will also retain the localised decision making that has benefited residents since the ALMOs were first set up.

"It is extremely important to us that council tenants are consulted fully on any proposals we put forward and there will be a thorough consultation and ballot of all tenants before we go ahead with any of the proposals in this paper."