South Tyneside Council has decided to shut down its arm’s-length management organisation (ALMO), South Tyneside Homes (STH), after operating for 18 years. Following a tenant consultation, the council’s cabinet approved the move to bring housing services back under direct control. All staff from the 16,000-home ALMO will transition to the council. The decision aligns with a trend where several local authorities have reverted to direct control due to financial and operational challenges. STH reported a deficit of £7.7 million in its last financial year. Jim Foreman, the council’s lead member for housing, emphasised that the change will facilitate improvement opportunities and streamline housing services.