§ Mr. John Grantasked the Secretary of State for the Environment what is the estimated loss of central Government funds to the London borough of Islington in the next financial year if council house rents are frozen; and what are the estimated consequences of such action in respect of (a) average weekly rate rises for Islington council tenants and (b) increased average weekly rate rebates to Islington council tenants.
§ Mr. StanleyEntitlement to housing subsidy is unaffected by authorities' decisions on rent increases. However, any decision to forgo rent income, unless offset by an expenditure reduction, automatically means an increase in total expenditure for block grant purposes. Whether this attracts grant-aid or incurs grant penalties will depend on Islington's overall level of expenditure, and on whether or not it overspends the guidance figure issued by my right hon. Friend. In the absence of full information no prediction of increases in rates or in rate rebates can be made.