HC Deb 10 March 1999 vol 327 cc240-1W
Ms Buck

To ask the Secretary of State for the Environment, Transport and the Regions what action his Department is taking to follow up the proposal, in his July 1998 statement on housing and regeneration policy, for a single allocation to local housing authorities for capital investment in housing; and if he will make a statement. [76017]

Ms Armstrong

In October, my Department issued a consultation paper on creating a single housing allocation for capital investment to local authorities, which followed up proposals contained in the Deputy Prime Minister's statement on housing and regeneration policy in July 1998. A single capital allocation for housing is part of the Government's agenda for modernising local government finance. It aims to give local authorities more discretion in deciding their capital programme for housing. The proposal will have some impact on distribution to authorities with high levels of capital receipts relative to need. Such authorities will be expected to make a greater contribution to capital investment in housing in their area from these resources. Authorities with greater need will receive more resources.

Most respondents to the consultation paper welcomed the main principle of our proposals. Some expressed concerns about the effect on the distribution of resources between local authorities, the possible impact on private sector renewal activity, and the timing of the change. I have given careful consideration to all these issues, but I have concluded that we should proceed as planned with the introduction of a single housing capital allocation in 2000–01. The guidance to be issued to local authorities for this year's Housing Investment Programme will cover the detailed implementation of the single pot. It will also address concerns raised in consultation responses about the importance of taking full account of the needs of the private sector in authorities' housing strategies.

I accept that some arrangements will be necessary to facilitate the transition to a single allocation. My officials will shortly be writing to the local authority associations with details of the arrangements we propose to make.