§ Mr. Frank Allaunasked the Secretary of State for the Environment why subsidies for council housing are planned to remain frozen at virtually the same total for the next four years, during which there will be an annual addition to the number of such houses; approximately what reduction in average subsidy 702W per house will be involved; what will be the average increase in rent, apart from increases in building and land costs; and if he will consider maintaining the existing subsidy per house out of North Sea oil revenue and other Government resources.
§ Mr. ShoreMy hon. Friend is no doubt referring to the White Paper on the Government's Expenditure Plans, 1978–79 to 1981–82—Cmnd. 7049.
The figures quoted therein for subsidies to local authority housing are the net result of a combination of factors: on the one hand, increased annual expenditure arising from new capital investment, and higher management and maintenance costs; and, on the other hand, a reduction in loan charges on existing debt due to lower interest rates, and increases in rents.
On this basis, the average changes, year by year, in subsidy per house would be:
£'s per dwelling at 1977 survey prices 1978–79 +1.6 1979–80 -6.5 1980–81 -1.42 1981–82 -4.78 The projected rent increase for the year 1978–79 assumes that the guideline average rent increase of 60p a week per dwelling will be applied by those authorities in a position to do so. For later years the projections are based on the assumption that rents will keep broadly in line with changes in money incomes.
Subsidy is allocated to comply with current legislation and to enable Government housing policies to be carried out. Decisions on the ways in which revenue from North Sea oil can be used to support Government policies have not yet been taken.
§ Mr. Frank Allaunasked the Secretary of State for the Environment why capital expenditure on council house building, improvement, acquisition and land is planned to increase by only £97 million, from £1,947 million to £2,044 million, between 1978–79 and 1981–82; and if he will devote a part of North Sea oil revenue and other Government resources to increasing the programme.
§ Mr. ShoreThe Government have provided for a substantial and increasing level of housing capital investment by local authorities. However, as was stated 703W in the White Paper on Public Expenditure—Cmnd. 7049—the detailed figures for the later years are more than ever tentative. The housing investment programme will be reviewed in the light of the housing strategies of local authorities and the assessment of housing needs. These will be taken into account in determining any future adjustments in the size of the programme and priorities within it. Decisions on the ways in which revenue from North Sea oil can be used to support Government policies have not yet been taken.