HC Deb 11 December 1995 vol 268 c509W
Mr. Raynsford

To ask the Secretary of State for the Enviornment (1) what discussions he has held with(a) local authorities considering a large-scale voluntary transfer of housing and (b) non-charitable housing associations set up as a consequence of a large-scale voluntary transfer proposal about the potential impact on their business plans of his proposal to withdraw tax relief grant in April 1997; [4280]

(2) what consideration he gave to the impact on housing association rents of his proposal to withdraw tax relief grant from non-charitable housing associations; [4238]

(3) what assumptions he has made about the number of non-charitable housing associations which may alter their constitution and seek charitable status as a consequence of his proposal to withdraw tax relief grant in April 1997; [4279]

(4) what consultation he has undertaken with non-charitable housing associations, their tenants, their lenders and other interested parties before deciding to discontinue their entitlement to tax relief grant; [4277]

(5) what discussions he has held with large-scale voluntary transfer housing associations about the potential impact on their business plans of the proposed withdrawal of tax relief grant in April 1997. [4281]

Mr. Curry

In deciding that tax relief grant for non-charitable housing associations should be discontinued from April 1997, subject to parliamentary approval of the necessary legislation, the Government were aware that withdrawal would in many cases necessitate some adjustment to their business plans and finances. The Government none the less took the view that it was not appropriate for non-charitable associations to continue to have this financial benefit in the context of the Government's proposals to allow other bodies to compete for funds to support the provision of social housing.

My Department will be talking in detail to the National Federation of Housing Associations and other bodies concerned about the proposals.

Decisions on whether to seek charitable status are a matter for individual associations. Housing associations' rents depend on many factors, including the efficiency of their development and upkeep of property, and their management costs.