§ Mr. Ashleyasked the Secretary of State for the Environment what information he has as to how much is spent by each housing department on financing building alterations for disabled people; and what will be the estimated administrative cost in recovering value added tax on this work for the year ending June 1985.
§ Sir George YoungI refer the right hon. Member to Table 2.19 of "Housing and Construction Statistics-December Quarter 1983 Part 2", a copy of which is in the Library. A breakdown of annual expenditure between individual local authorities is not readily available.
The administrative cost of recovering VAT during 1984–85 is a matter for each local authority.
§ Mr. Ashleyasked the Secretary of State for the Environment what will be the estimated extra cost of work carried out with (a) improvement grants and (b) intermediate grants, following the imposition of value added tax on building alterations; and on what basis this estimate is given.
§ Sir George YoungIt is not possible to provide a reliable estimate in the form requested by the right hon. Member. VAT is already payable on housing repair works, which form a significant proportion of many improvement grant applications. The effect of the new VAT levy on the cost of grant-aided works will depend on the nature of the works included in individual applications approved by local authorities.
§ Mr. Ashleyasked the Secretary of State for the Environment if, in view of the Chancellor's proposal to impose 15 per cent. value added tax on building alterations, he will increase the allowable costs limits for improvement grants to accommodate the change; what 23W arrangements will be made for those improvement grants that have already been made; and if he will make a statement.
§ Sir George YoungIt is for local authorities to decide the admissible costs of works, including any additions for VAT, that may be approved for grant in individual cases. My right hon. Friend and I will consider any representations which demonstrate a need for an increase in eligible expense limits to take account of changes in VAT liability.
The Housing Act 1974, as amended, does not allow for improvement grants already approved by local authorities to be revised to take account of the new VAT levy.