§ Mr. Dewar
asked the Secretary of State for Scotland what is his estimate of the number of additional local authority tenants who would be entitled to rent rebates if there were to be an average rise in local authority rents in Scotland of 40 per cent.; and what additional costs would result for the Exchequer and for local authorities, respectively.
§ Mr. Rifkind
I am unable to provide an estimate of the number of additional local authority tenants who would be entitled to rent rebates given an average rent increase of 40 per cent. A projection based on current assumptions and arrangements, however, suggests that such an increase would be likely to increase rent rebate expenditure by about £19 million. Central Government would meet 90 per cent. of additional expenditure by way of rent rebate subsidy with the balance being met by local authorities.