§ Mr. Lofthouseasked the Secretary of State for the Environment if he will publish for England, with all assumptions made explicit, the national notional housing revenue account for the financial year 1983–84 from which the figure for central Government subsidies to local authorities housing in table 2.7 of Cmnd. 8789-II has been derived.
§ Mr. Stanley[pursuant to his reply, 29 March 1983, c. 94]: The following is the notional HRA which underlies the provision for Exchequer and rate fund housing subsidies to English local authorities in 1983–84.
1983–84 £ million (cash prices) Expenditure Supervision and management 737 Repairs and maintenance 1,061 Interest 2,227 Debt redemptions 345 Capital met from revenue 96 Others 93 Additions to balances — TOTAL 4,559 Income Gross rent income 3,500 Interest from sales—advance to purchasers 338 Interest from sales—capital receipts invested 87 Other rents and income 308 RFC towards rent rebate administration 14 TOTAL 4,247 HRA deficit 312 Exchequer subsidy 367 Net RFC -55 Notional sum of deficits +290 Notional sum of surpluses -345 The assumptions underlying this notional HRA are:
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Amount a. Average rent increase and deemed increase in 85p per dwelling LC for subsidy per week b. Number of sales 140,000 c. Average price, net of discount £11,150
Amount d. Proportion of price as initial receipt 47 per cent. e. Total capital receipts (inc. land) £1,027 million f. Gross capital expenditure £1,635 million g. Increase in wages and prices 6 per cent. h. Reckonable increase in management and maintenance for subsidy calculation purposes 7 per cent. i. Average pool rate of interest 11.0 per cent. j. Mid-year stock 4.6495 million