§ Lord Mottistoneasked Her Majesty's Government:
Whether they have decided what increases should be assumed, for housing subsidy proposals for 1989–90, in reckonable expenditure on maintaining local authority dwellings and in the deemed rent.
The Earl of CaithnessWe have decided that for 1989–90 the increases in reckonable expenditure and income to be used in calculating housing subsidy should, as for the current year, be some 5 per cent. higher than the general level of increases in costs and prices. We are therefore proposing that the amount of management and maintenance expenditure to be treated as reckonable for housing subsidy for 1989–90 should be increased by 10.25 per cent. The increase in income which authorities are deemed to find from their own resources in 1989–90 will be £1.93 per dwelling per week. Consultation papers have been issued to the local authority associations today and copies have been placed in the Vote Office and in the Libraries of both Houses.