HC Deb 20 December 1984 vol 70 cc330-1W
Mr. Craigen

asked the Secretary of State for Scotland if he will indicate in respect of each district council in Scotland the assumptions as to future rent levels upon which the rate fund contribution limitation was calculated; and if he will make a statement.

Mr. Ancram

My right hon. Friend estimates that his proposal to set an aggregate limit of £89.5 million on the amount which authorities may estimate to carry from their general rate fund to the credit of their housing revenue account in 1985–86 would imply an average increase of £1.02 per week on the current Scottish average council house rent of approximately £10.45. This calculation is based on the assumption that forecast expenditure on management and maintenance will increase by no more than 5 per cent. next year and that local authorities' estimated loan charges will total £399.5 million.

The rent increases imposed by individual authorities are likely to vary considerably about this average. My right hon. Friend has not made detailed assumptions about future rent levels in individual authorities. These will depend on authorities' own decisions, not least on the level of provision they intend to make for management and maintenance and the extent to which they have in the past budgeted within housing expenditure limits.