Never knowingly undernudged

So-called ‘John Lewis-style mutuals’ are (depending on your point of view) the future of the public sector or a euphemism for privatisation. However, the expression may have some unexpected implications for the government.

Cabinet Office minister Francis Maude launched a competition today to find a commercial partner for the government’s Behavioural Insights Team – or Nudge Unit. He described the move as ‘employee-led’ as the 12 Nudge staff have led the process and will continue to run the organisation. Reports suggest that private companies will be invited to bid for a stake of up to 50 per cent in the new business in return for the government guaranteeing long-term contracts. The staff and the government would also own stakes.

nudge

The Nudge Unit is claimed to have already saved the government millions of pounds although it not quite clear how. It hit the headlines for different reasons today when it was revealed to be behind bogus psychometric tests for jobseekers. It is best known to me as the unit that the DCLG failed to consult when it introduced the New Homes Bonus in a bid to change the behaviour of local authorities and I wonder what, if anything, it had to say about the behavioural impacts of welfare reform that the DWP found impossible to quantity.

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Ignoring the obvious

Without local authorities, England has only seen more than 200,000 housing starts three times since the war. So why is council housing being ignored now?

As John Perry argues in Inside Housing, councils are currently building around 3,000 homes a year but they could build 15,000 if they were given more freedom to borrow. ‘A government that is desperate for house building shouldn’t look a gift horse in the mouth,’ he says.

Desperate is exactly the right word for our current performance on housebuilding: just 105,000 starts in England in 2011/12, down from a miserable 112,000 in 2010/11 and less than half the level needed to meet demand and prevent an ever-increasing spiral of rising prices and rents.

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Yet more cuts

As Crisis launches a campaign against ‘unworkable and irresponsible’ cuts in housing benefit for the under-25s, there is another scary reminder today of the bleak prospects for the next spending review.

Fiscal Fallout, a report from the Social Market Foundation and Royal Society of the Arts, concludes that the flat-lining economy will make the structural deficit significantly higher than forecast in the Budget in March.

Read the rest of this post on Inside Edge, my blog for Inside Housing

 


Squeezed out

Housing is the big thing missing from today’s major report on living standards from the Resolution Foundation.

The final report of its Commission on Living Standards looks at the plight of low and middle income families. Things were bad even before the crash with average incomes falling by £570 between 2003 and 2008 as growing inequality meant that prosperity was not shared around. The gap was only made up by a £730 a year increase in tax credits.

Read the rest of this post on Inside Edge, my blog for Inside Housing


Five-year stretch

Five years ago this month I started my blog for Inside Housing wondering how I would ever find enough interesting things to say. I needn’t have worried.

Fortunately for me (bad news is always good news for bloggers and journalists) and unfortunately for everyone else, the week before I wrote my first post a small bank called Northern Rock went bust. The consequences of that still dominate my blogging five years later (and hopefully that makes it interesting enough to keep reading).

Read the rest of this post at Inside Edge, my blog for Inside Housing


Economic ally

Housing has gained an unexpected new ally in the battle to convince the government to fund more affordable new homes.

City broker Tullett Prebon is better known for its warnings of financial Armageddon and for shoot-from-the-hip appearances on the Today programme by its chief executive Terry Smith. It has even argued that financial austerity and severe cuts in public spending are a myth spun by the government to the bond markets.

But now a report by its global head of research Tim Morgan argues not only that a house building programme is one the few options left for the government, but also that it must be social housing funded by public investment.

Read the rest of this post at Inside Edge, my blog for Inside Housing


The road home

If the government can change the public borrowing rules for roads, why not for council housing?

The papers this morning (see here and here) have been briefed that the government growth package to be launched when parliament returns next month will include not just a housebuilding stimulus but a radical new plan to boost road building.

Read the rest of this post at Inside Edge, my blog for Inside Housing