The new Value for Money standard: Opportunity or Threat?

The Homes & Communities Agency has published a consultation paper on its proposed amendments to the Value for Money regime in England.

The key proposals are to move away from the current ‘narrative’ style VfM statements to a more ‘outcomes’ based system where boards report against a set of metrics determined by the regulator for all landlords. Boards will also be expected to set targets of their own linked to the organisation’s strategic plan.

On the face of it there is little to disagree with in the consultation paper. A simplified system that will allow the regulator, boards, tenants and others to compare how different associations are delivering ‘value for money’.

However, a closer reading of the consultation paper leads to the suspicion that it is government that wants to do the comparing, that it has its own view of what value for money looks like and that the new suite of metrics will be a very handy stick to beat associations with. For instance on more than one occasion the consultation points out that boards might have to consider merger to deliver real value for money. Of course, there are lots of kind words about proportionality, specific circumstances and social purpose but they would say that wouldn’t they.

Consultation on the Value for Money Standards and Code ends on the 20th December 2017 but the consultation on the proposed Metrics ends on 22nd November. Board members need to read the consultation and fully understand the implications of these proposals for their own organisation. Do the new standards just offer the opportunity of a simplified reporting regime or are they a threat to how you do business?