Council loses £58million in housing funding

Opposition councillors said cabinet members had not had the information they needed to consider the financial impact of plans to buy 206 affordable homes as part of the Dollis Valley Regeneration Scheme reports David Floyd

Barnet Council has missed out on over £58million of funding for affordable homes after a controversial housing scheme was delayed due to objections from opposition councillors.

The council had been given the grant by the Greater London Authority to enable it buy 208 affordable homes from developer Vistry as part of the Dollis Valley Estate Regeneration Scheme.

The final phases of the redevelopment of the estate were halted in 2023 when developers Vistry said plans to build a mix of 221 homes, with 126 privately owned and 95 affordable, was no longer viable.

The council agreed a new deal with Vistry for all 208 homes constructed to be affordable (187 social rent and 21 for key workers) and to be bought by the council for management by Barnet Homes.

Plans for the acquisition were approved at a cabinet meeting on 21st July, however the decision was ‘called in’ by Conservative councillors.

Call-in is a mechanism established by the Local Government Act 2000 to enable councillors to challenge a decision that causes them significant concern.

It is designed to be used only in exceptional circumstances where councillors believe the council’s decision making processes have not been correctly followed.

As a result of the opposition councilors’ action, it was not possible for the council to approve the Dolly Valley scheme by the date set by the GLA and the funding was withdrawn, so the call-in meeting, which took place on Tuesday, 4th August was only able to consider next steps.

Controversial plans

The plans had been particularly controversial because residents, who bought homes on the estate built during earlier phases of the regeneration scheme, objected to the impact of affordable homes on the overall housing mix.

The deal would have seen the estate become 60% social rent whereas it had originally been intended to be 60% privately owned.

In their call-in request, Conservatives councillors raised doubts about the council’s business case and said: “we submit that the decision of the cabinet is contrary to the policy framework, namely the council aim of being financially responsible and meeting financial sustainability”.

Their case was that the cabinet had not been given sufficient accurate information to make a decision about the possible implications of the scheme for the borough’s finances.

However, the tight deadline meant that, irrespective of whether the arguments raised at last week’s call in meeting were successful, the option to go ahead was no longer available.

Following the meeting, Barnet Post contacted the council to ask what would happen next.

A spokesperson told the Post: “The council was notified by the Greater London Authority (GLA) on 28^th July that the delay to the project timetable means it no longer supports awarding grant funding to the scheme.

“As a result, the cabinet decision to approve the full business case and the council’s acquisition of 208 affordable homes as part of Phases 4 and 5 of the Dollis Valley Estate Regeneration Scheme can no longer be implemented.”

Asked what the council’s response was to the concerns raised by opposition councillors, the spokesperson said: “The council considered the full business case before taking its decision on 21st July and was satisfied that the proposals represented an appropriate route to securing 208 affordable homes as part of the regeneration of the Dollis Valley Estate.

“The Section 151 Officer provided finance clearance for the report, attended both the finance and growth overview & scrutiny committee and cabinet meetings, and was satisfied that the decision supported the council’s objectives of being both financially responsible and building quality, affordable homes.

“Financial responsibility means the council must tackle the root causes of budget pressures which include homelessness and temporary accommodation. The delivery of affordable homes at Dollis Valley would have avoided costs in the future for Barnet residents.

Homes “would have saved the council money” on temporary accommodation

They added: “It is regrettable that we cannot now build these affordable homes, which would both have saved the council money on temporary accommodation and provided homes to families who need them.”

“However, following the subsequent change in circumstances relating to the GLA grant funding, the original proposal can no longer be implemented and officers will now return to cabinet with alternative recommendations for consideration.”

At the call-in meeting, councillors agreed on a series of recommendations to cabinet designed to improve the provision of information before major decisions are taken.

Responding to the recommendations, opposition leader Peter Zinkin said: “Good decision-making depends on transparency, proper scrutiny and access to complete information.

“These recommendations will ensure councillors have time to consider important matters and that residents can have confidence in robust scrutiny.”

Barnet Post approached the GLA for a response to the call-in request. A spokesperson said that the Post should direct its query to Barnet Council.

Local news needs your support

We are proud that we were at the forefront of reporting on the recent local elections. We can’t do this without the support of our readers.

Independent news outlets like ours – reporting for the community without rich backers – are under threat of closure, turning British towns into news deserts.

If our coverage has helped you understand our community a little bit better, please consider supporting us with a monthly, yearly or one-off donation.

ACT NOW!

Monthly direct debit

Annual direct debit

£5 per month supporters get a digital copy of each month’s paper before anyone else, £10 per month supporters get a digital copy of each month’s paper before anyone else and a print copy posted to them each month. £50 annual supporters get a digital copy of each month's paper before anyone else. £84 annual supporters get a print copy by post and a digital copy of each month's before anyone else.