§ Mr. George Grantasked the Secretary of State for the Environment if he is aware that many local authorities are refusing to make improvement grants where the approved cost exceeds £2,000; and if he will now seek to amend the Housing Act, 1971, so as to reimburse local authorities 90 per cent. of the loan charges when the approved cost exceeds £2,000, instead of 75 per cent. as at present.
§ Mr. ChannonI have heard of a few authorities taking this line which is I think due partly to a misunderstanding. Amending legislation is not necessary. As 137W was explained in the Department's circular about the Act issued last August, where an authority consider that there is good reason for paying a 75 per cent. improvement grant to an amount in excess of the present cash limit of £1,500, my right hon. Friend is prepared to consider raising the limit for this particular case. Where this is approved the local authority receives the 90 per cent. Government contribution. Local authorities seeking approval of this kind should get in touch with the appropriate Regional Office of the Department.