§ Mr. Michael Spicer
My right hon. Friend the Secretary of State announced on 30 January (Official Report, column 175) that the capital resources available to the Housing Corporation in 1989–90 would be increased by £120 million, with a corresponding reduction in 1990–91, to reflect a greater speeding up of housing schemes by housing associations than had been forecast. This adjustment is not expected to affect the Housing Corporation's total expenditure and output over the two years taken together.
An independent examination of the Housing Corporation's financial systems in the autumn of 1989 found that the corporation's expenditure forecasting model was soundly based. The model has now been updated to take account of faster development times. The Housing Corporation will also be introducing cash planning targets for associations in 1990–91 which will enable the corporation more accurately to predict and control the flow of expenditure.