§ Sir Michael GryllsTo ask the Secretary of State for the Environment when he intends to make an announcement about the distribution of housing capital funding for 1996–97. [6790]
§ Mr. CurryI am today announcing decisions about the distribution of capital funding for housing in 1996–97.
Councils will receive housing investment programme allocations totalling over £1.2 billion for 1996–97. Under the competitive HIP process, we have again been able to direct funding to those councils that are best able to make use of them.
Within the HIP programme, £943 million is for general purpose allocations, the housing "annual capital guidelines". As last year, these have been allocated 40 per cent. on the basis of a statistical assessment of local housing needs and 60 per cent. on a competitive basis related to performance.
As part of the assessment of its programme, each local authority is required to submit a housing strategy statement, setting out a comprehensive framework for housing programmes for at least the next three years, covering not only the plans of the local authority but the contribution to be made by the private housing sector. The strategy is prepared in consultation with all those interested in the local housing scene, including the Housing Corporation, housing associations, tenants' groups and the private sector. Once again, there is a continuing improvement in the performance of the great majority of local authorities, with most of them now producing good quality housing strategies.
In addition to these annual capital guidelines, £270 million has been allocated for private sector renewal and housing defects in the form of "specified capital grant". Once again, 40 per cent. of funding has been distributed on a statistical assessment of local needs, and 60 per cent. on a competitive basis.
Since the competitive system was introduced in 1991, the performance of local housing authorities has improved considerably. As described in the housing White Paper published in June, local authorities have an important role as strategic enablers and the Government wish to encourage all authorities to produce good strategies and fulfil their functions effectively and efficiently. Therefore, I propose to change the system of annual capital guideline and specified capital grant allocations for 1997–98 to a fully competitive basis, under which 100 per cent. of the allocations locally will be decided competitively. The Department will be consulting representatives of the local authority associations on this proposal early next year.
I am depositing tables in the Library of the House showing each authority's annual capital guideline and specified capital grant allocation for 1996–97. Together, these comprise the HIP allocations. In addition, I am depositing a list of the authorities whose performance is assessed as being well above the average for their region.