§ Mr. BowisTo ask the Secretary of State for the Environment whether he has reached conclusions following his recent consultation exercise on the development of the local authority housing investment programme process.
§ Mr. HowardOn 21 May, my Department launched a major consultation exercise on the further development of the local authority housing investment programme—HIP —process. The proposals which we have put forward build on the measures begun last year by seeking to achieve better value for the money spent through housing capital programmes.
The consultation paper made proposals in four broad areas: on the preparation of housing strategies by local authorities, and the co-ordination at area level of decisions on the initial allocation of Housing Corporation funding with local authorities' housing strategies; on the further development of recent trends in our approach to the allocation of all-purpose housing annual capital guideline —ACG—resources within the HIP process; on the development of the system of forward indications of housing ACGs; and on the further development of recent trends in the approach we have taken to the advance allocation of specified capital grant—SCG—resources for private sector renewal.
During the consultation period, we agreed to a request from the local authority associations that discussions should continue after the formal close of the consultation exercise on the longer-term proposals. We have therefore taken decisions at this stage only on matters relevant to the arrangements for the 1993–94 HIP round.
We have received a total of 211 responses, including material from the four relevant local authority associations, the Institute of Housing, the National Federation of Housing Associations, 161 local authorities and 29 housing associations. Discussions have also taken place with the Housing Corporation.
304WAfter considering and taking in to account the representations which have been made, I have decided to invite authorities to prepare comprehensive housing strategies for the 1993–94 HIP round as described in the consultation paper. This will involve authorities in preparing strategies which cover the housing needs and resources of their areas over a three-year period, set in the context of a realistic assessment of priorities and proposals. My Department will issue guidelines to authorities very shortly which will provide further details.
We will carry forward the new arrangements made last year to place emphasis on the efficiency and effectiveness of authorities in our decisions on the allocation of HIP resources. This will help ensure that best value for money is obtained from capital resources for social housing and that there are incentives for authorities to improve their performance as landlords and enablers.
I have also decided to proceed with our proposals to draw together, on to the same timetable for decision making, both the HIP process, which applies to local authorities, and the approved development programme —ADP—process which is used for the allocation of funds through the Housing Corporation to housing associations. The principle of co-ordinating these two funding streams, in the context of a single housing strategy, met with almost universal support; discussions will continue with interested parties on the practical details of implementation.
Last year, Housing Ministers attended a number of successful presentations from local authorities, based on their housing strategies and HIP proposals. These occasions heightened the awareness and involvement of tenants and other local people in the HIP round, and pointed to the scope for partnership between local authorities, the private sector, and the Housing Corporation and housing associations in the provision of social housing. I have decided to continue this initiative during the coming year, and the Minister for Housing and Planning has written today to the leaders of 33 authorities inviting their authorities to give presentations to Housing Ministers during the autumn. A list of the authorities concerned has been placed in the Library and letters have been sent to local Members.
A copy of a commentary paper on the responses to the consultation exercise has been placed in the Libraries of the House. I intend to report back to the House once the remaining decisions have been taken later this year.