§ Mr. Frank Allaunasked the Secretary of State for the Environment how much of the funds allocated to municipalisation in 1975–76 was not spent owing to the restrictions upon local authority purchases imposed by Department of the Environment Circular 64/75.
§ Mr. FreesonThe White Paper on Public Expenditure published in January 1975 (Cmnd. 5879) included provision for municipalisation in England in 1975–76 of £155 million. The latest estimate of expenditure is £115 million—both figures at outturn prices—but additional expenditure on initial works on properties acquired during 1975–76 will take place during the present year. Such expenditure does not count against authorities' allocations under Section 105 of the Housing Act 1974.
The controls imposed by Circular 64/75 were designed to ensure that the resources available were used in areas of housing stress and elsewhere where the need was greatest. For a variety of reasons expenditure was less than provided for, but it is not possible to estimate how much this was due to the arrangements in Circular 64/75 and how much to other factors.
I have recently been having discussions with local authority associations and individual authorities to encourage further acquisition and renovation of empty, under—used or substandard houses, particularly in stress areas. The recent Circular 33/76 has considerably broadened the categories of acquisitions which authorities are free to undertake without prior approval by the Department, and I hope that this will enable authorities to make fully effective use of the provision for 1976–77.
242WThe Study Group on Programmes of Social Ownership and Renovation of Council Dwellings under my chairmanship is continuing to examine needs, priorities and administrative controls for future years.