§ Mr. ThomasonTo ask the Secretary of State for the Environment when he proposes to issue the draft housing revenue account subsidy and item 8 determinations for 1997–98. [4565]
§ Mr. ClappisonLocal authorities have today been sent the draft housing revenue account subsidy and item 8 determinations for 1997–98. They have been invited to let my Department have their views by 6 December 1996.
We are proposing that the average guideline rent for 1997–98 should be £35.36 a week. It is only 73p per week more than this year's guideline rent. Guideline rent increases for individual authorities would range between 48p and 98p.
To encourage authorities to keep their rent increases within the guideline increase, we propose to continue with the present rule limiting rent rebate subsidy. This does not affect tenants' entitlement to housing benefit, but does provide authorities with a strong incentive to keep rent increases down to reasonable levels.
Total provision within the subsidy system for expenditure by authorities on management and maintenance in 1997–98 will be over £3.3 billion. This is about the same per dwelling as in the current financial year.
326WWe believe that there is still scope for town hall housing departments to secure efficiency savings and reduce their spending. The opportunities are there. We would like to see authorities taking a hard look at their housing services and finding better and more efficient ways of delivering them. This might include, for example, the involvement of housing associations or others in the private sector in the delivery of services. Even modest economies would help tenants by keeping rent increases down.
Copies of the draft determinations have been placed in the House Library.