Ethos Public Relations Manchester

DLO saves money

by Ethos public relations

With the VAT rise now in place it’s important to remember that it’s not just consumers who will be tightening their belt but also local businesses -where the tax increase of 2.5% can represent an increase in thousands of pounds on their expenditure.

One local business faring better than most is Hyndburn Homes Repairs, the direct labour organisation of Hyndburn Homes, a major social landlord in the area.

“It has been estimated that the VAT rise could see the social housing sector face an additional £100 million repairs and maintenance bill across the UK,” said David Cross, Operations Manager for Hyndburn Homes Repairs. “This means that some housing associations may be struggling to maintain the same level of maintenance and repair to their housing stock – fortunately that is not the case here.”

Having an in house direct labour organisation (DLO) means that Hyndburn Homes will only have to pay VAT on any work it sub-contracts out. However, the majority of the £4.5m repairs and maintenance work carried out by Hyndburn Homes Repairs is undertaken in-house.

Only a minority of housing associations have an in house DLO but according to David Cross more businesses are looking to follow the Hyndburn example.

“I think we can expect to see the number of DLOs growing in the future,” he said. “2010 has seen the demise of a number of Contractors which has caused a lot of problems for some housing associations. This together with the VAT increase may see housing associations return to the DLO option.”

Hyndburn Homes Repairs employ over 70 fully skilled staff from its base in Altham, making a highly effective workforce. In addition, the company has a successful apprenticeship scheme which recruits and trains young people from the local area.

David adds: “Over three thousand Hyndburn Homes residents rely on our services to ensure their home is kept in good repair, and despite the increasing costs of materials our customers can rest assured that its business as usual at Hyndburn Homes and Hyndburn Homes Repairs in 2011.”

To read other news from Hyndburn Homes click here.

Posted at 18^th January 2011