HC Deb 06 December 1971 vol 827 cc1081-4

Queen's Recommendation having been signified—

Resolved, That, for the purposes of any Act of the present Session to introduce a new system of housing subsidies for housing authorities; to provide for rent rebate and rent allowance schemes administered by housing authorities; to make provision as to the housing accounts of local authorities; to amend the law about rents of houses and in particular those subject to the Rent (Scotland) Act 1971 or provided by housing authorities; and to make other provisions as to housing finance, it is expedient to authorise payments out of money provided by Parliament as follows:—

1. Housing subsidies for local authorities as follows:—

  1. A. Residual subsidy that is an annually reducing sum based on
    1. (1) the Exchequer contributions to which a local authority are entitled for the year 1971–72;
    2. (2) the further Exchequer contributions to which they would be entitled for that year if houses, in respect of which proposals for their provision were submitted to the Secretary of State before 1st December 1971 for his approval but which were not completed in that year, had been completed in that year;
    3. (3) the amount of any contribution which a local authority are entitled to receive for the year 1971–72 from another local authority in pursuance of an overspill agreement.
  2. B. Housing expenditure subsidy, that is the percentage specified below of the increase in expenditure above a specified amount.
  3. C. High cost subsidy, that is 75 per cent. of the amount by which the average income of a local authority from rents exceeds a specified amount above the average income of all local authorities in Scotland from rents.
  4. D. Rent rebate subsidy, that is the percentage specified below of an amount determined by reference to a standard amount of rent rebates for unfurnished lettings.
    5. 1082
  5. E. Rent allowance subsidy, that is the percentage specified below of an amount determined by reference to the granting of a standard amount of rent allowances for unfurnished lettings.
  6. F. Slum clearance subsidy, that is 75 per cent. of specified expenditure incurred by a local authority in the exercise of their slum clearance functions.

The said percentages shall be:—

90 per cent. for the first year.
Housing expenditure subsidy. 85 per cent. for the second year.
Rent rebate subsidy. 80 per cent. for the third year.
Rent allowance subsidy. 75 per cent. for the fourth and subsequent years.

2. Housing subsidies for development corporations and the Scottish Special Housing Association, which shall be the following four of those for local authorities—

  1. A. Residual subsidy;
  2. B. Housing expenditure subsidy;
  3. C. High cost subsidy;
  4. D. Rent rebate subsidy;
except that in the case of the housing expenditure subsidy, the high cost subsidy and rent rebate subsidy the percentage specified for each year shall be 100 per cent.

3. Such payments (hereafter in this paragraph referred to as 'deficiency payments' as the Secretary of State may, with the approval of the Treasury, determine to the Scottish Special Housing Association in respect of any excess in any year of the total net expenditure (as calculated in accordance with rules made by the Secretary of State) incurred by the Association in the provision or improvement of housing accommodation, or in the improvement of the amenities of a predominantly residential area over the sum of the payments made to them under section 16 of the Housing (Financial provisions) (Scotland) Act 1968, section 59(7)(b) of the Housing (Scotland) Act 1969 and any provisions of the said Act of the present Session (other than a provision for the making of deficiency payments).

4. Housing subsidies for housing associations or the Housing Corporation as set out below.

  1. A. Basic residual subsidy, that in an annually reducing sum based on the housing subsidies received for 1971–72.
  2. B. Special residual subsidy, that is an annually reducing sum based on the housing subsidies which would be receivable for 1083 1972–73 or 1973–74 but for the proposed repeal of sections 1 to 12 of the Housing (Financial Provisions) (Scotland) Act 1968
  3. C. New building subsidy, that is 90 per cent. or less of the initial deficit incurred on any new building scheme approved by the Secretary of State.

5. Payments by the Secretary of State—

  1. A. By way of lump sum payments made instead of certain annual payments under section 92 of the Housing Act 1964 or section 19 or section 48 of the Housing (Financial Provisions) (Scotland) Act 1968 (or section 8 of the Housing (Agricultural 1084 Population) (Scotland) Act 1938, section 104 of the Housing (Scotland) Act 1950 or section 4 of the Housing (Scotland) Act 1952); or
  2. B. In discharge of any administrative expenses.

6. Any increase attributable to the said Act of the present Session in payments out of money provided by Parliament under any other Act.

And that it is expendient to authorise any payments into the Consolidated Fund.—[Mr. Patrick Jenkin.]