HC Deb 08 March 1978 vol 945 cc1420-2
20. Mr. Litterick

asked the Secretary of State for the Environment what is his Department's estimate of the total amount of central Government money made available to the city of Birmingham for (a) house building and (b) home improvements in the current year; and what were the corresponding figures for the two previous years.

Mr. Freeson

For 1978–79 Birmingham's allocation for block 1, which includes house building, acquisition and renovation, was £65.5 million. For 1977–78 the figure was £67.1 million. These are comparable figures at 1978–79 provisional outturn prices; similar figures for earlier years are not available. In addition, the Housing Corporation is currently investing £2.6 million in house building and renovation, and Birmingham has been allocated a further £3 million on housing for the period up to March 1979 as part of the inner cities construction package.

Mr. Litterick

I am grateful for my right hon. Friend's answer, but does he agree that these increases do not keep pace with the rate of inflation? Does my right hon. Friend agree that in the existing circumstances where there are vast quantities of unused resources—human, material and financial—this is the best time, particularly when interest rates are falling, to embark upon a more ambitious programme of house construction and renovation? Does my right hon. Friend not agree that such a move would serve also to stimulate the economy?

Mr. Freeson

As soon as we are able to get more resources put into housing construction and other public sector working, I would welcome such a move and take the necessary steps in my area of responsibility. My immediate problem, however, is to see that the resources that we have already made available are taken up. In the case to which my hon. Friend refers there has been a reduction in the house building programme for 1978 which has led me to have to withdraw some of the resources from Birmingham and direct them elsewhere in order to maintain use of the money available.

Mr. Eyre

Is the right hon. Gentleman aware that his figures deliberately obscured the truth on this matter? On home improvements, does he realise that Birmingham has suffered because the Government's programme has been cut to less than one-third of its 1973 figure? Will the right hon. Gentleman consider the serious social consequences of this to Birmingham and other large cities, where large areas of old housing are having to be left to deteriorate?

Mr. Freeson

The figures were not intended to be misleading, nor were they. They related to local authority action in terms of house building, acquisition and improvement, which was what I understood my hon. Friend the Member for Birmingham, Selly Oak (Mr. Litterick) to be asking about. There is a problem on improvement grants. It is a question not simply of what resources the Government can make available but of the resources that are being taken up. Consistently throughout the country in recent years there has been an underspend on the budgeted figure. We are taking action to try to get a bigger take-up of improvement grants. We initiated a campaign a few days ago to get that under way.

Mr. Lee

What action are the Government taking to deal with the bloody-mindedness of Conservative local authorities which refuse to take up resources and are thwarting the Government's efforts in this regard? Will my right hon. Friend consider the suggestion made earlier for the establishment of a housing agency on the lines of that in Scotland?

Mr. Freeson

I cannot add to my earlier answer about a special housing association for England. There are ways by which we can secure an increased take-up. I do not want to go into detail about them this afternoon, but we are seriously examining such means and we shall be making an announcement fairly soon.

Mr. Speaker

Order. I hope that no one else will copy the language of the hon. Member for Birmingham, Handsworth (Mr. Lee). After all, we are the Mother of Parliaments.