§ Mr. Michael Brownasked the Secretary of State for the Environment what is the average subsidy, per annum, from public funds in each of the following cases (a) a newly-built council house and (b) a council house built (i) five years, (ii) 10 years, (iii) 20 years and (iv) 50 years ago.
§ Mr. Geoffrey FinsbergA local authority's subsidy entitlement each year is based, for housing constructed since the passage of the Housing Rents and Subsidies Act 1975, on total reckonable loan charges on its housing revenue account. In respect of housing built before 1975, an authority receives the basic element of subsidy, which reflects the total subsidies payable to the authority in 1974–75, together with the supplementary financing element, payable in respect of increases in interest rates affecting pre-1975 debt. It is not possible to give the average subsidy payable now on council housing of the various ages requested. The estimated subsidy, that is, first year cost, net of unrebated rent, for an average new council house completed in England in 1979 is £1,460. About three-quarters of this sum is met by central Government housing subsidy, and the rest is met from rate fund contributions and rent pooling. This figure excludes any rent rebates which the tenant may receive.