§ Mr. MacGregorasked the Secretary of State for the Environment what proportion of the further deficit on local authorities arising from the decision to extend the rent freeze to 31st March 1975 will be met by the Exchequer; what proportion will fall upon the rates; and if he will give an estimate of the rate contribution.
§ Mr. FreesonUp to 80 per cent. of any shortfall in the housing revenue account in the current financial year would be met by housing subsidies. The whole of the remainder will be taken into account in assessing for rate support grant purposes the effect of all changes in prices, costs and remuneration in the current year. My right hon. Friend will shortly be making proposals on the rate support grant. I cannot give any estimate of the rate contribution until the grant has been settled.
§ Mr. MacGregorasked the Secretary of State for the Environment whether he will ensure that none of the further deficit on local authorities' income arising from the decision to extend the rent freeze to 31st March 1975 will fall upon the ratepayer.
§ Mr. FreesonNo. But by far the greater part of any deficit will be met by way of housing subsidies and rate support grant.