HC Deb 02 December 1987 vol 123 cc928-9
20. Mrs. Mahon

To ask the Secretary of State for the Environment what is the percentage reduction in the housing investment programme allocation for 1988–89.

Mr. Waldegrave

As local authority spending power from capital receipts continues to increase, capital allocations decline in importance. So, while total housing investment programme allocations for 1988–89 will be 6 per cent. lower than for 1987–88, gross provision for local authorities housing capital expenditure will be increased by 4 per cent. to £3,048 million.

Mrs Mahon

Is the Minister aware that in my local authority area £80 million of capital investment is needed to put council housing back into good repair and that, because the Government have stopped improvement grants, we are in danger of having to pull down very good private stoke?

Mr. Waldegrave

The hon. Lady is quite wrong to say that we have stopped improvement grants. In real terms, the value and number of improvement grants has increased many times since we came to power in 1979. I emphasise that receipts can be capitalised and used for repairs by local authorities, and local authorities should do that.

Mr. Hind

Is my hon. Friend aware that many of the houses built in new towns and in the 1950s and 1960s are in relatively poor condition? That is especially true in Skelmersdale new town. Will my hon. Friend put his mind to improving the housing improvement investment programme in that area — specifically for West Lancashire district council?

Mr. Waldegrave

I hear what my hon. Friend says, but he will understand that there are a number of similar claims on the programme.

Mr. Pike

Does the Minister recognise that the answer that he gave a few moments ago does not address the problem? Many local authorities cannot give improvement grants or, indeed, accept applications for improvement grants, with the result that many northern terraced houses are decaying and becoming derelict. In the long run that will cost more, because they will have to be pulled down. Even allowing for the extra allocation to which he referred, and taking capital receipts and the housing investment programme allocation into account, is it not time that more money was made available? Should we not allow more capital receipts to be spent to try to solve the problem?

Mr. Waldegrave

On repairs, there is no limit on the spending of capital receipts. More is now being spent than was the case. For example, the development of enveloping schemes, which are relevant to constituencies such as the hon. Gentleman's, has come on apace in recent years.