§ Sir Elwyn Jonesasked the Secretary of State for Social Services what steps he is taking to review cost limits for social service projects; and if he will take steps to assist the Newham Borough Council, in view of the fact that the tenders it receives are substantially above those cost limits and that this has led to a reduction of design and building standards and, in one case, to the shelving of a particular project.
§ Sir K. JosephThe cost allowances for social services projects are kept under review, and a substantial increase in them was announced by my Department's Circular LASS/L 23/73 dated 15th June. We are always ready to discuss with local authorities the resolution of costing difficulties that arise in relation to particular projects, but I recognise that in some instances some reduction in proposed standards proves necessary. As I understand it, the reason leading Newham London Borough Council to shelve one project was that an urban programme grant was available to meet a part only of the cost. I had agreed the cost limit and given approval for loan sanction for the balance under the normal social services capital programme.