§ Mr. Heddleasked the Secretary of State for the Environment if he plans any changes in his public expenditure programme.
§ Mr. Kenneth BakerMy right hon. Friend the Chancellor of the Exchequer has announced the main changes to the Government's public expenditure plans for 1986–87 and the following two years. The following table gives details of the major changes in my Department's programmes.
The total net housing programme is being increased by £220 million in 1986–87 and by £200 million in 1987–88. This will enable gross provision for capital expenditure in 1986–87 to be set at £3,250 million, £200 million above the figure for 1985–86 published in last year's White Paper.
The major part of this increased provision will be for local authorities to enable them to make progress in dealing with the problem of serious disrepair revealed by the report of the inquiry into the condition of their stock, which I am publishing separately today.
I shall be announcing later, in the usual way, the apportionment of this total between the local authorities, the Housing Corporation and new towns. I shall as usual be consulting the Housing Consultative Council and the Housing Corporation on the details.
Widespread problems of disrepair have been growing up over the years since the great expansion of municipal housing in the 1950s and 1960s. We have now, however, for the first time commissioned a systematic inquiry, which reveals the extent of the problem. A greater concentration of resources is clearly required to deal with this situation over a number of years.
Local authorities have already been giving increasing priority to housing renovation. Last year over £2 billion was spent on this (over £1 billion on capital account and 112W a further £1 billion on revenue). In the light of the inquiry report, and as a result of the additional resources I am now making available, I now look to them to give even greater priority to this work.
The private sector should also be brought in to assist whenever this is possible. Private sector resources and skills have a major part to play in developing new patterns of ownership and management in co-operation with tenants, for an increasing number of local authority estates.
New building by local authorities must be a lower priority. In most areas new local authority building for general needs has rightly been reduced to very low levels—these needs can more appropriately be met by the private sector. The continuing success of our right-to-buy policies also means that thousands more families every year are able to become owner-occupiers. Local authority new building should increasingly be concentrated on providing for elderly and disabled people and others with special needs. Similarly, improvement grants should be targeted primarily to those who can least afford to pay for repair and improvement of their own homes.
In the other environment services programme, provision for local authority local environmental services capital, net of receipts, has been increased by £39 million, to £205 million for 1986–87. The revised level of provision more realistically reflects the perceived level of need for spending on these services.
Ministers are currently reviewing Government policies affecting the inner cities. Meantime, provision for the urban programme is being maintained at the levels shown in Cmnd. 9428.
I have increased the resources for the derelict land scheme over previously planned provision to maintain a high rate of clearance; and the urban development corporations are to retain some £11 million extra receipts from disposal of developed land to plough back into their development programme.
I shall also be making additional resources available to the Nature Conservancy Council for its statutory responsibilities for protection of natural habitats; for the Countryside Commission's successful "Groundwork" projects in rundown countryside around towns and other work; to the Development Commission, to maintain the pace of provision of workshops and small factories in rural areas; to the Sports Council to boost in particular its valuable work in the inner cities; and for the heritage to continue the rehabilitation and conservation of our historic houses, parks and monuments.
These additions are more than offset by extra receipts now expected from the new towns' programme of disposal of completed commercial and industrial properties. New investment by the new towns is not affected, and remains at the previously planned level.
As regards overall local authority spending, my predecessor announced on 26 July that we have increased local authority relevant current expenditure provision for 1986–87 by some £500 million. I have consulted local government on the various elements of the 1986–87 rate support grant settlement and will lay proposals before Parliament in December.
There was a substantial overspend on local authority net capital provision in England in 1984–85. It is most important for national economic management that spending be brought into line with our public expenditure plans.
113WAccordingly, I am considering how the figures announced today on provision can be translated into capital expenditure allocations for local authorities intended to bring expenditure within the cash limit in 1986–87. I shall make a further announcement shortly.
The external financing limit for water authorities in England and Wales (excluding MAFF grants) remains as
114W
*£ million cash 1985–86 1986–87 1987–88 1988–89 Cmnd. 9428 provision Cmnd. 9428 provision Revised† provision Cmnd. 9428 provision Revised† provision Provision† Housing: (Local authority, Housing Corporation and New Towns): Capital Gross Expenditure 3,051 3,120 3,250 3,150 3,210 3,110 Receipts -1,730 -1,530 -1,600 -1,430 -1,480 -1,330 Net Capital Expenditure 1,321 1,590 1,650 1,720 1,730 1,780 Current Expenditure‡ 954 940 1,100 910 1,100 1,100 Programme total: Net capital plus current 2,280 2,530 2,750 2,630 2,830 2,880 DOE Other Environment Services (OES): Local Environmental Services Current Expenditure (excluding Urban Programme Current) 2,201 2,334 2,549 2,360 ║2,594 ║2,594 Other Local Authority Current 171 181 183 Local Environmental Services (excluding Coast Protection): Capital Expenditure: Gross 527 538 576 552 559 567 Receipts -360 -371 -371 -380 -380 -390 Net 167 167 205 172 179 177 New Towns (Industrial and Commerical; Sewerage): Gross 58 48 48 49 49 51 Receipts -100 -60 -130 -60 -110 -101 Net -42 -12 -82 -10 -60 -50 Urban Programme (DOE component, including¶ current expenditure) 241 226 226 232 232 237 Derelict Land Reclamation, Urban Development Corporation 151 156 160 164 168 173 Royal Parks, Ancient Monuments, Heritage 93 102 109 105 110 113 DOE Administration, Environmental Research‡ 143 157 139 142 140 143 Environmental bodies; Environmental bodies; Development Commission; Sports Councils; Nature Conservancy Council; Countryside Commission 99 108 123 110 124 126 Water Research and Other Water Services 9 8 7 9 8 8 Nationalised Industries' External Finance (Regional Water Authorities, England and Wales excluding MAFF grants; British Waterways Board) 213 139 138 36 34 34 PSA: Office and General: Accommodation: Parliamentary Accommodation• 84 -110 ▀-84 -105 ▀-94 -96 Total Local Authority Relevant Current Expenditure (covering all Departments' services) 21,314 21,750 22,254 21,950 ║22,254 ║22,254 * Totals may not sum due to rounding. † Revised provision figures include technical adjustments since Cmnd. 9428, as well as survey changes. ‡ After transfer of PESC provision for DOE housing administration from Housing to OES. ║ Figures as for 1986–87: no decision has yet been taken on the appropriate provision of 1987–88 and 1988–89, which will be considered in the assumed in the Cmnd. 9428 planning total. The British Waterways Board EFL for 1986–87 is £45 million, the same as in 1985–86.
An additional £8 million for 1986–87 has been allocated to the Property Services Agency, mainly to cover increases in current expenditure on the civil estate.
115Wlight of local authorities' budgets for 1986–87 and other factors.
¶ Urban programme provision maintained at Cmnd. 9428 level, pending Ministers' review of inner city policy and expenditure.
• PESC provision is negative because Departments' market-rent payments to PSA under the property repayment service system exceed PSA's costs, because of properties held on Crown freehold or at low historic rents.
▀ Revised figures include other PESC adjustments since Cmnd. 9428.