§ Ms Christine RussellTo ask the Secretary of State for the Environment, Transport and the Regions how he intends to take forward his proposals under the capital receipts initiative. [4842]
§ Ms ArmstrongWe have today issued a consultation paper to all local authorities in England. That paper sets out our proposals for the distribution of any additional spending between local authorities.
We wish to ensure that spending generated under the receipts initiative will be directed towards priority housing needs. Capital receipts themselves, however, have not always been generated in the areas of greatest need. Some authorities have generated significant volumes of receipts but have relatively low needs. Others have had little or no scope to generate significant receipts, yet have particularly high needs. We are, therefore, proposing that resources should be allocated on the basis of one third according to the proportion of eligible set-aside receipts and the remaining two thirds in accordance with assessed need.
The paper also sets out our objectives for spending. Our intention is that the resources will be targeted on housing and housing-related regeneration schemes. We, therefore, wish to ensure that local authorities integrate the additional spending into their housing strategies, plan for badly needed repairs to dilapidated stock and support new provision where it is needed.
It is also our intention that this initiative should contribute to and complement this Government's wider policy of increasing training opportunities and leading the young unemployed into work and financial independence.
My Right hon. Friend, the Chancellor, will announce the amount of additional resources that will be available for 1997–98 and 1998–99 in the Summer budget.
Copies of the consultation paper have been placed in the Library of the House.