§ Mr. Channonasked the Secretary of State for the Environment (1) by what date he estimates the final settlement for transition subsidies for housing for the year 1972–73 will be made; and whether he proposes to make the settlement on the basis that full rent income had been properly collected by all housing authorities in that financial year;
(2) whether transition subsidy was paid in full to those local authoriites who delayed implementation of the Housing Finance Act 1972, or whether the transition subsidy was calculated on the basis that the full rent income had been properly collected in the financial year.
§ Mr. Crosland:Settlements of subsidy payments are not finalised until after completion of audit.
I am advised that Section 3 of the Housing Finance Act 1972 does not provide for the reduction of transition subsidy payments where the full rent was not collected. But the provisions limiting subsidy payments by reference to the state of the housing revenue account apply; and surcharges, or rent loss certificates under the provisions of the Housing Finance (Special Provisions) Bill, would have the effect of adjusting the housing revenue accounts in appropriate cases.
§ Mr. Channonasked the Secretary of State for the Environment by what date the final settlement for housing subsidies to housing authorities is normally reached; and, in particular, by what date the settlement was arrived at for the year 1971–72.
§ Mr. Crosland:Final settlement of housing subsidies is made in the course of the half-yearly subsidy payments following receipt of the audited subsidy claims for the authority concerned. The majority of settlements would be completed within 15 months of the end of the 504W financial year. There are usually a number of cases which fall to be settled later because of particular problems; this applied to the 1971–72 settlements and some are still outstanding.
§ Mr. Channonasked the Secretary of State for the Environment under what statutory powers he proposes not to pay subsidies to local authorities who increased their entitlement to subsidy by delay in implementing the Housing Finance Act 1972, and where councillors are subsequently surcharged.
§ Mr. Crosland:I can only pay subsidies which are properly due. Under the Housing Finance Act 1972 subsidies are limited by reference to the sum sufficient to balance the housing revenue account. Where the late implementation of that Act results in a surcharge, or in a rent loss certificate under the Housing Finance (Special Provisions) Bill, the housing revenue account would be credited accordingly, thus reducing the sum sufficient to balance the account.