§ Sir S. Summersasked the Minister of Housing and Local Government under what regulations he urged local authorities in circular 41/65 to withhold standard grants in those cases where the cost of modernisation was thought to approach the cost of building a new house.
§ Mr. MellishMy right hon. Friend's advice was not based on regulations. He gave it as a reminder to local authorities that there is a limit beyond which resources can be better used for rebuilding than improvement. But he said in the same circular that he would accept whatever decisions were made in individual cases by the authorities themselves. The advice about cost did not in any case apply to standard grants, but only to discretionary grants which are related to a higher standard of improvement. Local authorities are obliged to pay standard grants if certain conditions, none of which relate to cost, are fulfilled.