§ Mr. Kaufmanasked the Secretary of State for the Environment if he is satisfied that he has sufficient legal powers for the award of urban development grants; and if he will make a statement.
§ Mr. KingUrban development grants will ba paid to local authorities on approved projects under section 1 of the Local Government Grants (Social Need) Act 1969 towards expenditure which they are required to incur to deal with special social need in urban areas.
Local authorities may incur expenditure on urban programme and urban development grant projects under section 137 of the Local Government Act 1972, which is a qualified general power, and under a wide range of specific powers, and it is for them to satisfy themselves that their powers are adequate for their purposes.
However, some authorities have expressed doubts about their powers under Section 137 of the Local Government Act 1972 to grant aid land acquisition and building works comprised in projects approved for urban development grant because one of the specific powers conferred on them is to make loans for these purposes. I am advised that there is sufficient ground for doubt that it would be right to amend the law in England and Wales to clarify the matter. I intend to do this at the earliest opportunity. In the meantime, I am prepared to pay urban development grant towards expenditure incurred for those purposes on approved schemes. I hope to announce the first list of project approvals shortly.