HC Deb 16 January 1974 vol 867 cc529-31
17. Mr. William Hamilton

asked the Secretary of State for the Environment what has been the total amount of subsidy paid on local authority housing in each of the last five years ; and how much is expected to be paid in 1973–74.

Mr. Channon

The total amounts of Exchequer subsidy paid on local authority housing in England in each of the last five years, and the estimated outturn for 1973–74 are as follows: in 1968–69, £101 million ; 1969–70, £117 million ; 1970–71, £148 million ; 1971–72, £172 million: 1972–73, £240 million ; and in 1973–74, £290 million.

Mr. Hamilton

Does not the hon. Gentleman think it strange that the subsidy should be going up as the house building programme is the lowest on record in the last 20 years? Does he recall that when the present Government were first elected the first White Paper they produced on new patterns of public expenditure had the deliberate intention of saving £200 million on housing subsidies? Does he not think it obscene that, at a time when public house building is at its lowest for 20 years, there should be at least three senior Government Ministers speculating in land and making colossal profits out of improvement grants resulting from legislation produced by their own Government? Is not that obscene and indefensible?

Mr. Channon

I do not accept the hon. Gentleman's imputations, which are all too typical of his conduct in the House. What may have disconcerted the hon. Gentleman and led to his outburst is the fact that the subsidies have very nearly trebled between 1968 and 1973–74.

Mr. Woodhouse

Can my hon. Friend say whether his recent relaxation of the rigid rules on fixed-price contracts for public authority building apply to local authority housing, since this has been one of the principal constraints on local authority building in recent years?

Mr. Channon

My hon. Friend has made a very important point. I hope that the changes in the contractual procedures which I announced just before Christmas will have this effect. It is something which both local authorities and builders have been asking for some time. Now that the change has been made, I hope they will find it of benefit to them.