§ Mr. Bowis
To ask the Secretary of State for the Environment what was the reason for the continuation of the previous basis for housing subsidy when Lambeth borough council changed its accounting policy on sinking fund accumulation rates used for debt charges in the financial years 1984–85 and 1985–86.
§ Mr. Yeo
The Department refused Lambeth borough council's request to increase from 5 per cent. to 10 per cent. the sinking fund accumulated rate used in the calculation of housing subsidy entitlement because such a change would have resulted in an increase in the amount of subsidy paid to the council in the long term.