§ Mr. DafisTo ask the Secretary of State for the Environment if he will make it hs policy to ensure that the proceeds from council house sales, including capital receipts currently set aside, are earmarked for the development of new social housing within each local authority area.
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§ Mr. BaldryMy right hon. Friend the Chancellor of the Exchequer announced in his autumn statement a relaxation of the rules governing the use by local authorities of their capital receipts. In consequence, authorities are able to spend 100 per cent. of most capital receipts generated between 13 November 1992 and 31 December 1993.
This initiative will proceed in conjunction with our plans for a capital partnership in England between central and local government to enhance the value for money from these substantial extra resources. These proposals represent an opportunity for the provision of additional new social housing, particularly through the sponsorship by local authorities of housing association development, as well as for substantial new expenditure on the renovation of existing housing.