§ Mr. FearnTo ask the Secretary of State for the Environment if he will introduce legislation to amend part VI of the Local Government and Housing Act 1989 to release capital receipts from the sale of council houses for investment in the provision of new housing.
§ Mr. YeoThe Local Government and Housing Act 1989 (part IV, not VI) requires local authorities to set aside part of their capital receipts to meet outstanding loan debt and other liabilities, and this remains a sensible and prudent requirement. It has also enabled a greater proportion of capital receipts to be recycled in the form of new credit approvals to those local authorities where housing needs are greatest. Local authorities are free to spend the remainder of receipts on new capital investment. The balance between debt redemption and new investment is set in regulations and is kept under review.