HC Deb 03 December 1975 vol 901 cc625-6W
64. Mr. Frank Allaun

asked the Secretary of State for the Environment what is the approximate reduction of spending expected in the present financial year compared with the previous one on local authority mortgages for house purchase, for improvements and for municipilisation of houses, respectively; and if he will take steps to reverse these cuts.

Mr. Freeson

For housing as a whole the public expenditure estimates provide for an increase of over 25 per cent. in each of the years 1974–75 and 1975–76 over the provision for 1973–74. The provision made for the three programmes referred to was as follows:

£million—1974 survey prices
1974–75 1975–76
Local authority lending for house purchase 405 250
Local authority improvements 305 255
Municipalisation 125 180

The figures for 1974–75 were substantially overspent. On the basis of the latest figures, I expect a similar degree of overspending on lending for house purchase this year, and probably some degree of underspending on municipalisation. These figures naturally take no account of the scheme under which the building societies have agreed to provide £100 million to augment local authority home loans this year. I am considering the provision to be made for these three programmes in 1976–77.