Mr. William O'BrienTo ask the Secretary of State for the Environment if he will publish the formula for arriving at the housing element allowed to local authorities under the housing subsidy application; and if he will make a statement.
626W
§ Mr. BaldryMy Department publishes, annually, two general determinations setting out how each local housing authority's entitlement to housing revenue account subsidy for the forthcoming financial year shall be calculated. These determinations are placed in the Libraries of both Houses. The most recent determinations were published on 17 December 1992 in respect of the financial year starting on 1 April 1993.
Mr. William O'BrienTo ask the Secretary of State for the Environment what is the rate of inflation included in the housing element of the housing subsidy(a) nationally and (b) for Wakefield district council.
§ Mr. BaldryOur policy is to target housing revenue account subsidy according to the relative needs of each authority. This is done by targeting the two main components of the housing element of the subsidy calculation, guidelines rents and management and maintenance allowances, according to the relative value and characteristics retrospectively of each authority's stock. For 1993–94, we are increasing guideline rents nationally by 7.75 per cent.—5 per cent. above the underlying rate of general inflation—compared with a 7.1 per cent. increase for Wakefield district council. Management and maintenance allowances are to be increased by 3.75 per cent. overall but Wakefield district council's allowance will be increased by only 1.25 per cent. because the council's existing allowance is already very close to our assessment of the council's relative need to spend.