HC Deb 12 January 2004 vol 416 cc571-2W
Mr. Austin Mitchell

To ask the Deputy Prime Minister (1) how much has been allocated to the Yorkshire and Humber Regional Housing Board for 2003–04; and how much of this is allocated by them to (a) repairs and renovation of council housing and (b) privatisation of council housing; [146422]

(2) how much has been allocated in the current financial year by the Yorkshire and Humber Regional Housing Board to gap funding for privatisation of council housing to (a) north-east Lincolnshire and (b) other local authorities; and what the allocation of gap funding per council property is in each area which has received it. [146423]

Keith Hill

2003/04 was the last year for which housing capital allocations were made to local authorities on the old basis of recommendations made to Ministers by Government Offices (the Yorkshire and the Humber Regional Housing Board was not therefore involved). As was standard, 80 per cent. of the resources available were allocated using a needs-based formula and 20 per cent. according to performance. Local authorities in Yorkshire and the Humber had an allocation of £65.9 million. This was for authorities to use according to their own priorities, without having to identify specific purposes such as repair and renovation of council housing or supporting stock transfers.

Under the new arrangements (introduced last year in the Communities Plan) the Yorkshire and Humber Regional Housing Board recommended capital allocations to local authorities totalling £76 million for 2004–05 and £81 million for 2005–06. The recommendations, which we accepted, included a fixed sum based on a needs-based formula (95 percent. in 2004–05 and 70 per cent. in 2005–06 of what they would have received under the old arrangements).

The balance is being used to commission proposals to deliver regional housing strategy priorities, and, in 2005–06, £10 million for 'transformational proposals' of regional significance, which deliver one or more of the regional housing strategy priorities. The Board has said that it will consider applications for gap funding from this £10 million in specific circumstances. Gap funding proposals have been submitted by north-east Lincolnshire and one other local authority. I understand that the Regional Housing Board will be considering at its meeting on 22 January all proposals submitted.

Separate from the above, local authorities in Yorkshire and the Humber also benefited from support for capital investment through the major repairs allowance (current figures are £172 million in each of 2003–04 and 2004–05). This allowance, calculated formulaically, covers the bulk of support for the repair and renovation of council housing.