§ Mr. Michael Morrisasked the Secretary of State for the Environment to what extent underspending of housing allocations is caused by the requirement that local authorities may only carry forward 199W 10 per cent. of their allocation; and if he intends to review this policy.
§ Mr. ArmstrongI do not consider that the present arrangements for carry forward cause underspend. Indeed, a larger percentage might reduce the incentive for authorities to be active in utilising the resources available to them in any one year. We are, however, introducing new arrangements for the coming financial year for authorities with small allocations since acceleration or slippage on one large project might cause them difficulties in programming their annual cash allocation. The details were given in Annex D to the letter notifying authorities of their 1979–80 allocations, issued 29 November 1978. I have arranged for a copy to be sent to the hon. Member.