HC Deb 24 October 1984 vol 65 cc681-2
9. Mr. John Fraser

asked the Secretary of State for the Environment what he now estimates the effect will be on public housing starts of his announcement of 18 July about local authority capital expenditure.

Mr. Gow

It is for each local authority to decide which projects, if any, need to be delayed in order to comply with my right hon. Friend's request for restraint.

Mr. Fraser

How much money was seized by the Treasury from local authorities when they were prevented from spending the capital receipts from the sales of council houses sold before the beginning of this financial year? How many houses could have been built or improved if local authorities could have spent that money? Can the Minister give a categorical assurance that no more housing investment cuts will be made in the current financial year?

Mr. Gow

The request by my right hon. Friend the Secretary of State on 18 July was made so that local authority capital expenditure this year should not breach what everybody understood and knew to be the limit placed by the Government. It was a request only to stay within the previously announced cash limit. Many local authorities are complying with my right hon. Friend's request for restraint and I hope that all will continue to do so.

Mr. McCrindle

To relieve local authorities of the problems of providing adequate housing for rent, why does my hon. Friend not redouble his efforts to persuade institutions such as property funds and building societies to take a greater interest in progressively providing housing for rent? In the process of such discussions, will he not entirely exclude the possibility of one day privatising the Housing Corporation?

Mr. Gow

We have no plans to privatise the Housing Corporation. I am happy to pay tribute to the voluntary housing movement, which has rendered immense service to the cause of housing the British people. My hon. Friend asks about the provision of housing for rent. Not the least of the problems in connection with accommodation for rent in the private sector is the Labour party's attitude, which has discouraged people from providing such houses.