§ Mr. Carter-Jonesasked the Secretary of State for the Environment if he will clarify the situation on the funding of the urban aid programme in view of the fact that many people feel that their future is uncertain; if he will give advance notice of decisions to continue or discontinue urban aid; and if he will make a statement.
§ Mr. ShoreAs proposed in the Government's recent White Paper "Policy for the Inner Cities", the Urban Programme is being enlarged and extended to cover industrial, environmental and recreational provision as well as the more traditional social projects. Although a large measure of priority will be given, in the next few years, to those authorities to whom partnerships have been offered, other authorities will continue to benefit from the Urban Programme.
In the early years the share of special assistance for authorities outside the partnership areas will necessarily be modest, though greater, in total, than the existing Urban Programme. Authorities, other than partnerships, who undertake inner area programmes will, however, be given preference in the allocation of grants, and I announced on 8th November the name of 15 authorities invited to prepare programmes.
Existing Urban Programme projects will continue to receive grant aid on the expenditure during the period for which it was originally approved.
515WA circular of the traditional type—Urban Programme Circular No. 17/DOE Circular No. 122/77—was issued on 30th November 1977 inviting local authorities to apply for grant on new capital and non-capital projects, including non-recurrent holiday projects, to be started in the financial year 1978–79. Under this circular, advance notice was given to local authorities that existing projects which have already been renewed for a further five years after the end of the period for which grant aid was originally approved will cease to be grant aided on 30th September 1978 but local authorities may, if they wish, apply for the reapproval of these projects for grant aid on the same terms as for new projects. With these exceptions, the recurrent expenditure incurred on other projects which have not been approved for grant aid beyond 31st March 1978 will under the circular, continue to attract grant until 31st March 1979. Further advice will be given in due course and in advance on the eligibility of these projects for grant aid after that date.