HC Deb 08 December 1988 vol 143 cc273-4W
Mr. Patnick

To ask the Secretary of State for the Environment when he will make the allocations to local authorities in England for their housing investment programmes in 1989–90.

Mr. Trippier

My right hon. Friend announced on 1 November 1988 that gross provision for capital expenditure by local authorities on housing in 1989–90 will be £3,303–£395 million (13.5 per cent.) higher than previous plans. This is the fourth successive year in which it has been possible to increase provision, thanks to the continuing success of the right to buy policy. Through the receipts which this provides, local authorities have a growing source of spending power to supplement their capital borrowing.

The gross expenditure provision allows for a total housing investment programme (HIP) allocation of £920 million. This represents new borrowing consents for local authorities. Each housing authority is today being informed of its initial HIP allocation for 1989–90. Copies of the letters to local authorities and the schedule of initial allocations have been placed in the Library and the Vote Office.

The local authority associations have been consulted about the distribution of HIP allocations. After considering their comments, and bearing in mind his obligation to make allocations in relation to need, my right hon. Friend has decided to make the distribution on the following basis: £873.5 million is available for main HIP allocations. Every authority will receive at least 75 per cent. of its corresponding allocation for the current year. £11.5 million is available for the homes insulation scheme, of which £8 million is being distributed with the main HIP allocations; £2.5 million will be reserved for further allocations under the scheme in accordance with demand, and the remaining £1 million will be used to defray local authorities' administrative costs. £20 million is available for the private sector area renewal initiative. The 29 authorities receiving allocations are being informed today of the details. £15 million is being reserved for additional allocations at a later date to authorities which face particular difficulties in meeting their obligations under the housing defects legislation.

Only the initial allocations are being made today. The letters being sent to local housing authorities describe the procedure under which they can apply for additional allocations.