Good Local Economics
The election is looming ever closer. The major parties find themselves in unfamiliar territory, with the rapid rise in popularity of parties such as the Greens and UKIP meaning that they must fight on two fronts. However, a flick through the 2015 general election manifestos suggests that although the political landscape is changing, the prevailing mode of economic development remains steadfast.
In most cases if you rob Peter to pay Paul, then Paul is going to be content. However, under the government’s proposal to extend right to buy (RTB) both councils (who will be forced to sell of their best stock) and housing associations (who will be compensated by councils for homes sold at a discount to tenants) will be left reeling. While the debate over the pros and cons of extending RTB has focused on the wisdom of the policy in terms of the impact on supply of affordable housing, less has been made of what it will mean for the relationship between housing associations and local government. A relationship which is already starting to show signs of strain due to the effects of continued fiscal austerity.
