HC Deb 26 November 1991 vol 199 cc469-70W
Mr. Blunkett

To ask the Secretary of State for the Environment what proportion of grant the Government will be contributing to city challenge schemes; and what proportion local authorities will have to raise themselves.

Mr. Portillo

The proportion of grants contributed by local authorities and the Government in city challenge are as follows:

Urban Programme

For revenue projects grant will be available at 90 per cent. rather than 75 per cent.; the local authority will be expected to contribute 10 per cent. of approved costs.

For capital projects, grant will be available at 75 per cent. and supplementary credit approvals (SCAs) at 25 per cent.

Estate Action

For estate action projects there will be 100 per cent. SCA support.

Local Authority Derelict Land Grant

In respect of local authority derelict land grant projects, all city challenge areas will receive 100 per cent. support, in the form of 50 per cent. grant and 50 per cent. SCAs in Lewisham and Tower Hamlets and 100 per cent. grant elsewhere.

Non Local Authority Derelict Land Grant

Grant on approved expenditure on non local authority derelict land grant projects will be given at a rate of 50 per cent. in Lewisham and Tower Hamlets and 80 per cent. in other areas.

Private Sector Housing Renewal

City challenge support is available under section 132 of the Local Government and Housing Act 1989 and for environmental works in renewal areas under section 96 of that Act. Grant will be paid on 90 per cent. of a local authority's eligible expenditure for group repair schemes and on 90 per cent. of the eligible expenditure incurred in carrying out environmental works in renewal areas; the local authority will be required to contribute the remaining 10 per cent.

City Grant

For city grant, grant will continue to be paid directly to developers and assessed on the deficit between project costs and project value.

Housing Corporation

For schemes funded by the Housing Corporation grant will be paid on mixed funded schemes and public funded schemes in 1992–93 at the appropriate rates for the area in accordance with Housing Corporation circular 33–91.

Mr. Blunkett

To ask the Secretary of State for the Environment if the funds for city challenge have been top-sliced from existing inner-city programmes.

Mr. Portillo

Yes; £82.5 million for 1992–93 has been top-sliced from the following programmes:

  • Estate Action
  • Urban Programme
  • City Action Teams
  • City Grant
  • Derelict Land Grant
  • Private Sector Housing Renewal
  • Housing Corporation

Mr. Blunkett

To ask the Secretary of State for the Environment if his Department will provide continuing revenue support to the city challenge schemes after the five year cut-off point.

Mr. Portillo

Revenue support for city challenge schemes will be provided for the period agreed in their action plans.