HC Deb 17 December 1980 vol 996 cc282-3
13. Mr. Allan Roberts

asked the Secretary of State for the Environment when he expects to announce the housing investment programmes for the financial year 1981–82.

Mr. Stanley

My right hon. Friend announced the housing investment programme capital allocations on 15 December.

Mr. Roberts

Is the Minister aware that now we are sorry that he did? Will he confirm that the real cut in Government capital expenditure on the housing investment programme is 30 per cent, not 15 per cent. as the Secretary of State announced? That is because 15 per cent. has been allowed for speculative capital receipts from sales of council houses, and these are not selling to the extent that the Minister expected, although he will not give the figures. Will he confirm that there is a 16.5 per cent. allowance in the housing investment programmes for increases in building costs and that that compares with only 11 per cent. for increased costs in the rate support grant settlement? Which is correct?

Mr. Stanley

The hon. Member can be assured that the reduction that my right hon. Friend announced was correct. The total permitted spend for local housing authorities next year is £2.201 million. That includes £430 million of capital receipts, and those are not speculative items. They relate, certainly, to sales of council houses and sales of land, but also, to a considerable extent, to mortgage repayments on debt incurred in previous years. We welcome the ability of local authorities to benefit directly when they are pursuing policies of home ownership in their areas.

Mr. Steen

Will my hon. Friend confirm that the sum going to the Housing Corporation this year for housing associations is the same as last year? Is he aware that the housing associations in Liverpool are continuing to spread slanderous statements to the effect that the Government are cutting money to the associations?

Mr. Stanley

My hon. Friend is correct. In the allocation that we have made to the Housing Corporation next year, we have maintained the real value of the £420 million that we provided this year.

Mr. Joseph Dean

Is the hon. Gentleman aware that his right hon. Friend's statement on council house rents the other day, in view of information given to me in a written answer from the Department of Health and Social Security, will cost that Department between £300 million and £400 million a year? What will be the total cost to the public purse of these rent increases, bearing in mind the part of rent rebates that will be borne by the Government? How will these massive increases in rent help housing?

Mr. Stanley

I can assure the hon. Gentleman that the increase in rents announced by my right hon. Friend will produce a net saving in public expenditure. The hon. Gentleman's question, however, demonstrates that about 45 per cent. of all local authority tenants have the protection of the rent rebate and supplementary benefit systems. That is one of the major justifications for the level of gross rents that my right hon. Friend announced.