Housing Improvement Grants (Hansard, 2 November 1983)

§ Mr. Speaker
Question No. 13.

§ Mr. David Marshall
Unlucky for some.

§ 13. Mr. Hirst
asked the Secretary of State for Scotland what was the total of housing improvement grants disbursed in Scotland in the year ended 31 March 1983; what is the estimate of such grants in the year ending 31 March 1984; and if he will make a statement.

§ Mr. Ancram
Returns by local authorities show that grants paid by them under the homes improvement grant scheme in 1982–83 provisionally totalled £64 million. The latest returns available from local authorities indicate that they are likely to pay grants to a total value of about £125 million in the current financial year.

§ Mr. Hirst
I am grateful to my hon. Friend for that reply, which confirms the considerable assistance that the Government have given to home owners, particularly during the period when the rate of grant was temporarily increased to 90 per cent. Does my hon. Friend believe that there may be an inflexibility in the current rules for eligibility in that people who live in a house the rateable value of which is in excess of the threshold do not qualify, albeit that they may be in considerable need? As I understand that a working party is at present reviewing the rules of eligibility, will he give urgent consideration to a relaxation of the rateable value threshold rule, but insist that the income qualification— [HON. MEMBERS: "Too long."]

§ Mr. Speaker
Order. The hon. Gentleman's supplementary question is getting a bit long.

§ Mr. Hirst
—but insist that the income qualification directs grants to those most in need?

§ Mr. Ancram
I am grateful to my hon. Friend for his remarks at the beginning of that supplementary question. The working group's report is now in the hands of my Department. It remains for us to formulate specific proposals for legislation to deal with some of the aspects of it, once we have had a chance to consider them fully, and of course before doing so we shall carry out consultation on them.

§ Mr. Maclennan
Does the Minister realise that the Government's precipitate and unheralded reduction in the rate of improvement grant has thrown local authorities into utter confusion and has lead to cross-party criticism of the Government's action? Is he aware that it has created an impossible situation for the building industry in Scotland in that it will lead to contracts entered into being incapable of completion? How does he propose to sort out this mess of his own creation?

§ Mr. Ancram
I completely refute the accusation that there is any mess and I am surprised that the hon. Gentleman was not prepared to comment on the tremendous achievement in his constituency, among others, that has resulted from the enhanced scheme. I remind him that the enhancement to 90 per cent was introduced originally for a period of nine months. That was extended to two years, and in his last Budget the Chancellor of the Exchequer announced that the closing date for the scheme would be 31 March. That was the date that we confirmed.

§ Mr. Henderson
Is my hon. Friend aware that the enhanced scheme was extremely valuable in improving the quality of the Scottish housing stock? Now that it has ended, will he say whether the percentage grant now available for improvements is more or less than when Labour was last in office?

§ Mr. Ancram
The percentage grants now available have returned, in the case of the two grants that have been enhanced, to their original levels. I repeat that the Scottish building industry, and those who live in the houses that have been improved, have done very well out of the scheme, a factor that hon. Members in all parts of the House should be prepared to recognise.

§ Mr. Home Robertson
Is the Minister aware that, while three weeks may be a long time in politics, it is an extremely short time in relation to a housing improvement scheme? Will he explain why he authorised the publication of a report apparently extending the improvement grants scheme at the beginning of October and then decided to cut it back three weeks later? Will he also let us into a secret? Was that decision taken in Edinburgh or London?

§ Mr. Ancram
I always listen carefully to what the hon. Member for East Lothian (Mr. Home Robertson) has to say about improvement schemes as I know that he is a great believer in them so far as his own personal housing is concerned.— [Interruption.]

§ Mr. Speaker
Order. We must hear what the Minister has to say.

§ Mr. Ancram
I must repeat to the hon. Gentleman that in the Budget this year the extent of the scheme was made clear—that the closing date would be 31 March 1984— and that remains the case. We simply confirmed that the scheme would not be extended.

Mr. Ron Brown
Is the Minister aware that the scheme is repeatedly abused by speculators, particularly by a consortium of Miller, Barratt and Wimpey, which intends to take over a large part of the West Pilton area— agreed to of course by his cohorts on Edinburgh district council? Will he take action to stop this abuse of the scheme, an abuse that has been a scandal in Scotland for some time?

§ Mr. Ancram
At least I am grateful for the frankness of the hon. Gentleman in that he confirmed that he did not welcome the scheme in the first place, which is more than some of his hon. Friends do. The most important impact of the scheme during the period for which it ran was the benefit it provided to those whose houses were improved. In view of the large amounts of money that have been committed as a result of the scheme during the two years to which I referred in my original answer, we in Scotland have a lot to be grateful for in that the enhancement took place at all.

§ Mr. Bruce
While I acknowledge the benefit that many people in Scotland have received from the scheme, may I ask the Minister to confirm that the sudden decision to cut it off, after many local authorities have made considerable efforts to promote it, is a breach of faith with the local authorities—which are acting as Government agents — and the many people who have applied for grant? Will he make it clear to the constituents with whom we shall have to deal that the responsibility lies with the Scottish Office and not with the local authorities?

§ Mr. Ancram
It appears that the hon. Gentleman did not listen to what I said. The closing date was known to local authorities and, I presume, to himself. We appreciate that certain commitments have been made by local authorities for expenditure next year. As I made clear in the House recently, commitments to expenditure that has been legally incurred by the date of the announcement that the scheme would not continue will be taken fully into account in the allocations that we make.

§ Mr. Dewar
Is the Minister aware that the rather unfortunate innuendo in his remarks about my hon. Friend the Member for East Lothian (Mr. Home Robertson) are something that I would like to think he will regret when he has time to consider them, because they were unworthy of someone in his position and will reflect no discredit on my hon. Friend but quite a lot on the Minister?
Let us brush past the air of unreality that has marked questions from Conservative Members. If the Minister is saying that there is no mess and no difficulty on the home improvement and repairs grants side, will he give a guarantee that, not only will existing grant applications that have been approved—but which cannot be dealt with in this financial year and will be carried over into 1984–85— be met, but that local authorities will have finance to continue to take new applications for the remaining part of this year and the next financial year? Is he aware that if that is not the position what he has done is to end access to grants for owner-occupiers, so justifying the understandable cries of betrayal that have come from Conservative councillors, particularly in the city of Glasgow?

§ Mr. Ancram
The hon. Gentleman knows that when I spoke on this matter in the House recently I made it clear that any commitments to expenditure under these schemes 869 legally entered into—that is, applications approved by 20 October—would be taken fully into account in the allocations made by my Department.

§ Mr. Maxton
What about an apology?

§ Mr. Ancram
Perhaps the hon. Gentleman will allow me to answer the hon. Member for Glasgow, Garscadden (Mr. Dewar).
I also announced on 20 October that we had asked all housing authorities to provide us with information on the extent of the grant commitments. Until we have that information it will be impossible to ascertain the overall effect that the announcement is having.