Housing Resources (Hansard, 16 December 1996)

§ Mr. Curry

I am today announcing decisions about the distribution of resources for housing in 1997–98.

Councils will receive housing investment programme allocations totalling nearly £900 million for 1997–98. Under the competitive HIP process, we have again been able to direct funding to those councils which are best able to make use of them.

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Within the HIP programme, £628 million is for general purpose allocations, or housing "annual capital guidelines". For the first time this year, these have been allocated on a fully competitive basis in line with the Government's move towards increased challenge and competitive funding as a means of improving the allocation of capital funding and the value for money obtained.

In addition to these annual capital guidelines, £193 million has been allocated for private sector renewal and £56 million for disabled facilities grant. These have also been allocated on a fully competitive basis.

As part of the assessment of its performance, each local authority is required to submit a housing strategy statement, setting out a comprehensive framework for housing programmes for at least the next three years, covering not only the plans of the local authority, but the contribution to be made by the private housing sector. The strategy is prepared in consultation with all those interested in the local housing scene, including the Housing Corporation, housing associations, tenants' groups and the private sector. Once again, there is a continuing improvement in the performance of the great majority of local authorities.

I am depositing tables in the Library of the House listing each authority's annual capital guideline and allocations for private sector renewal and disabled facilities grants for 1997–98. Together these comprise the HIP allocation. In addition, I am depositing a list of the authorities whose performance is assessed as being well above the average for their region.

Last month, the Government announced a new package of measures aimed at encouraging local authorities to transfer more of their stock to registered social landlords. Within the package of new measures, the estates renewal challenge fund will receive an additional £70 million over the next three years bringing spending to almost £500 million. Authorities will be granted a three year 'holiday' from the large-scale voluntary transfers receipts levy and the rules governing the use of LSVT receipts will come into line with those for right-to-buy transfers, making 25 per cent. of any receipt available to authorities to spend on housing. The limits on the size of a transfer to any one landlord will be increased from 5,000 to 12,000.

We also propose to use the housing investment programme to encourage such stock transfers and we will be consulting on changes to the 1997 HIP round in the new year.