§ Mr. Pardoeasked the Secretary of State for the Environment what was the average total annual cost to the taxpayer and the ratepayer in 1976 of providing one extra council house in the borough of Restormel, in North Cornwall, and in England and Wales, respectively, having regard to any central Government subsidy, any local government subsidy, and the average rent or rate rebate or supplementary rent or rate allowance.
§ Mr. ArmstrongIn England and Wales in 1976–77, assuming a typical all-in cost of £12,500 for a new council house, an average loans fund interest rate of 11 per cent., average management and maintenance costs of about £140, and average rent for a new house of about £6 a week, Exchequer subsidies would on average be £950 and the balance of about £280 would be met by a mixture of cross-subsidy from the rents of other council houses and rate fund contributions. These figures exclude rate support grant, supplementary benefits, rates and rate rebates. The cost of average rent rebate liability, about £60 a year, would add £45 to the Exchequer subsidy and £15 to be met by rates and cross-subsidy from rents. These figures apply to the first year. In the following years of the life of the property Exchequer and rate subsidy and cross-subsidy from other properties reduces; and in time properties provided in 1976 may be expected to contribute by means of the rent pooling system adopted for council housing to the cost of properties built later at higher cost. Figures for an individual authority can best be provided by the authority concerned.