'The government has clearly acknowledged that its original proposals, made public in May this year, were unrealistic. We remain seriously concerned both about the principle and the detail of the government's amended proposals.
'While we welcome the end to the speculation and uncertainty that local authorities have faced in recent months, we remain firmly opposed to the arbitrary increase from 35% of 50% in the amount of finance work that local authorities are forced to put out. We are also concerned that the new proposals will force councils to contract out the sensitive area of housing benefit administration in order to met their targets.
The institute says is was successful in persuading the government to review a number of areas:
-- the new competition percentage of 50% for finance represents a retreat from the government's original proposal of 65%
-- rather than abolishing the allowance for Bought in Goods and Services, as originally proposed, the government intends to replace it with two new credits.