HC Deb 19 December 1986 vol 107 cc746-7W
Mr. Coombs

asked the Secretary of State for the Environment when he will announce the housing investment programme allocations for 1987–88.

Mr. John Patten

My right hon. Friend announced on 6 November 1986 that gross provision for capital expenditure by local authorities on housing in 1987–88 is £2,922 million—an increase of £390 million over the corresponding figure for 1986–87. Some of this expenditure will be funded from the proceeds of the sale of council houses and other assets. Most of the remainder, £1,366 million, will need to be financed by borrowing. Each housing authority is being informed of its initial housing investment programme allocation which sets the amount of its borrowing approval for 1987–88. Copies of the letters to local authorities and the schedule of initial allocations have been placed in the Library and the Vote Office.

The local authority associations have been consulted about the distribution of HIP allocations. After considering their representations and the HIP submissions made by individual authorities, it has been decided to distribute them in the following way: £1,275 million to give each housing authority an initial allocation equal to 80 per cent. of its initial allocation for 1985–86. (These initial allocations include allocations totalling £13 million for the homes insulation scheme. This reflects a proposed restructuring of the homes insulation scheme, details of which I shall announce tomorrow). In London the amount which would have been allocated to the GLC has been distributed to the boroughs. In making these initial allocations my right hon. Friend has therefore honoured the assurances by successive Secretaries of State that authorities would receive allocations for 1987–88 of at least 80 per cent. of their initial allocations for 1985–86, and that London would not lose housing resources as a result of abolition of the GLC. £75 million for additional allocations for projects prepared in conjunction with the estate action team (Urban Housing Renewal Unit). This represents a 50 per cent. increase on the resources available in 1986–87, and builds on the team's success in developing imaginative solutions to the problems of rundown council estates. £14 million for additional allocations for authorities with exceptional problems in meeting their statutory obligations to home owners under the housing defects legislation. £2 million as a reserve from which additional allocations can be made for the homes insulation schemes.

Only the initial allocations are being made today. The letters being sent to local housing authorities describe the procedures under which they can apply for additional allocations.

Mr. John Fraser

asked the Secretary of State for the Environment if he will publish the separate housing investment programme allocations for each housing authority for 1987–88 and also in each case net of capital receipts, with an estimate of the receipts available to each authority in 1987–88. together with the allocations for the current year.

Mr. Tracey

A list of individual local authorities' housing investment programme allocations for 1987–88 was placed in the Library and Vote Office yesterday. I refer the hon. Member to my hon. Friend the Minister of Housing's answer yesterday to my hon. Friend the Member for Swindon (Mr. Coombs). A list of the HIP allocations for 1986–87 is also available in the Library.

Local authorities are able to spend the prescribed proportion of their capital receipts each year, in addition to their HIP allocation. The Department has not collected aly estimates from individual authorities of the level of their capital receipts in 1987–88.