HC Deb 04 December 1986 vol 106 c764W
Dr. Cunningham

asked the Secretary of State for the Environment what are the estimates of local authority gross expenditure and income, excluding double counting of flows, for England in (a) 1985–86 and (b) 1986–87 using breakdowns consistent with those in table 1 of the Department of the Environment publication "Local Government Financial Statistics, England 1984–85".

Mr. Ridley

This information is not yet available.

Mrs. Roe

asked the Secretary of State for the Environment whether, in the light of the report by the Public Accounts Committee on the control of local authorities' capital expenditure, he will now review the project control system for housing schemes.

Mr. John Patten

My Department has today sent to the local authority associations a consultation paper, prepared jointly with the Welsh Office, proposing the abolition of project control for new building and renovation schemes as from 1 April 1987, and its replacement by a system of unit cost limits which will not require the submission of schemes to the Department.

This change will reduce work both for local authorities and for the Department, and allow authorities to plan and implement their capital programmes more efficiently. It will also clarify their responsibility for achieving value for money in their housing schemes. To promote value for money the Department will be improving the statistics available on costs of schemes, and commissioning an in-depth study of a sample of recent schemes. The Audit Commission will also be providing guidance for local authority auditors on value for money issues.

Existing procedures will continue to apply where a local authority proposes to buy houses or land for housing.

I have placed copies of the consultation paper in the Library and the Vote Office. The local authority associations have been asked to comment by January 30 so that, if they are approved, the new arrangements can come into effect in 1987–88.