HC Deb 14 July 1976 vol 915 cc634-5
6. Mr. Arthur Jones

asked the Secretary of State for the Environment whether he has received the report of his housing finance review.

17. Mr. Stephen Ross

asked the Secretary of State for the Environment whether he can now give a date when he expects to publish the findings of his Department's review of housing finance.

Mr. Shore

The review is still in progress. I expect to have the conclusions later in the year.

Mr. Jones

In view of the cautious reply that was given by the Minister for Housing and Construction to the hon. Member for Bolsover (Mr. Skinner) on housing expenditure, it is clear that significant public expenditure reductions are imminent. Am I right in thinking that those cuts will be implemented irrespective of any recommendations that there may be in the housing finance review?

Mr. Shore

The housing finance review, as I have indicated, is not yet complete. Therefore, it is not possible for me to take that fully into consideration in any discussions that may be going on at present in the context of the forward public expenditure survey figures for 1977–78 onwards.

Mr. Frank Allaun

In the review, and in the context of the threatened public expenditure cuts, will my right hon. Friend reject any proposals for slashing council house subsidies? Does he agree that that would inevitably mean further rises in rents, thereby so discouraging council house building as to bring it almost to a halt?

Mr. Shore

I agree that in any proposals for subsidies we have to strike a balance to avoid the deleterious effect on new house building that my hon. Friend rightly fears. I think it would be unwise for me at this time of the year to try to anticipate the outcome of present discussions. However, my hon. Friend will recall that there were proposals in the last public expenditure survey that affected housing subsidies.

Mr. Ross

Is the right hon. Gentleman aware that his answer will cause some distress in many circles? Those of us who are interested in getting on with the housing finance review look forward, when the review is finally published, to a change in Government policy and greater flexibility. As the right hon. Gentleman's Department has had evidence from all quarters of the building industry and others involved for many months, it is surely time that the review was published, and that we had dates fixed for its publication and debate in the House.

Mr. Shore

I am as anxious as the hon. Gentleman to get on with it. I very much wish to complete the study at the earliest moment, and to report to the House and others on its contents, with a view to getting the reactions of the House and other interested parties. I agree that one of the purposes of the review is to achieve a greater flexibility in the provision of housing, in the broadest sense, throughout the country.

Mr. Raison

Will the right hon. Gentleman make it clear whether it is still his policy that there should be no limit on public sector building, or has it now been brought within the restrictions imposed on local authority spending?

Mr. Shore

The policy on public sector building remains as it has been stated in the previous Government, PESC and other policy statements. The House will appreciate that I am not at liberty to say what the future will bring.