§ Mr. Maclennanasked the Secretary of State for Scotland if he will (a) state his reasons and (b) cite the statutory authority for the calculation of housing support grant on a figure of notional rate fund contribution per head; what factors are taken into account in determining the notional per head contribution; and if he will publish the names of those local authorities whose statutory rate fund contribution in the 1986–87 housing support grant settlement was lower than per head notional amount.
§ Mr. AncramThe Housing (Financial Provisions) Scotland Act 1978 provides the statutory authority for determining the aggregate amount of housing support grant. As required by section 1(2)(c) of that Act, my right hon. and learned Friend consults the Convention of Scottish Local Authorities before estimating the aggregate amount of relevant income which might be expected to accrue to local authorities' housing revenue accounts in the grant year. My right hon. and learned Friend, with the agreement of the Convention of Scottish Local 449W Authorities, has continued the practice adopted since the inception of housing support grant in 1979 of using a notional per head income amount in estimating the aggregate amount of relevant income. Factors taken into account in recent years in determining this notional amount have been the figure used in the previous year's Housing Support Grant (Scotland) Order and the rate of inflation. My right hon. and learned Friend has now undertaken to review this approach during discussions with the convention leading to the 1987–88 settlement.
In 1986–87, the overall level of housing support grant payable to Scottish local authorities will be some £4 million higher than would have been the case had statutory rate fund contribution limits replaced notional per head income amounts, determined as above, in the grant calculations. Seven of the 24 authorities receiving housing support grant in 1986–87 benefit, some substantially, from the calculation method employed. The remaining 17 authorities, in the following list have statutory rate fund contribution limits below the per head notional income amounts included in the relevant income calculations.
Authority
- Berwickshire
- Roxburgh
- Annandale & Eskdale
- Stewartry
- Wigtown
- Banff & Buchan
- Gordon
- Kincardine & Deeside
- Moray
- Badenoch & Strathspey
- Caithness
- Nairn
- Ross & Cromarty
- Skye & Lochalsh
- Sutherland
- Argyll & Bute
- Orkney