§ Mr. HealeyTo ask the Secretary of State for the Environment, Transport and the Regions when he will announce the results of the consultation exercise on the needs indices to be used in the allocation of 2001–02 housing capital resources to local authorities and registered social landlords. [137364]
§ Mr. RaynsfordI am pleased to be able to announce that the needs indices for the 2001–02 allocations have now been finalised after careful consideration of the responses to the Consultation Paper we issued in summer and a number of other representations we have received.
141WWe have, with one exception, made the proposed changes to the local authority stock condition indicator in the Generalised Needs Index (GNI)—the index used in allocation of resources to local authorities. These were supported in nearly all responses. The exception is on the relative weights given to the renovation and improvement elements where we have decided to base these on the relative costs of the work as suggested in a number of responses.
Several of the responses raised concerns over authorities' ability to fund either private sector renewal activity or provision of new affordable housing following the transfer of resources into the new Major Repairs Allowance (MRA), which is ring-fenced for use on council housing. In the light of these responses, I have decided to increase the shares of the private sector stock and new provision indicators in the GNI to 45 per cent.—up from 35 per cent. and 40 per cent. respectively in the Consultation Paper. These increases involve reducing the share of the local authority stock indicator to 10 per cent. but we intend to increase this in the next two years to reflect the extra resources in these years which are expected to be spent largely on improving council housing. The other significant issued raised in the responses concerned the overall reduction in the targeting of resources to deprived areas resulting from the introduction of the MRA. Specific targeting of resources to deprived areas is not appropriate in the MRA but I have decided to increase the level of targeting within the GNI from 20 per cent. to 30 per cent.
The introduction of the MRA and the related GNI changes lead to shifts in the distribution of resources. We will ensure that all authorities with housing stock receive a 2001–02 allocation (housing capital plus estimated MRA) which is at least 10 per cent. above their 2000–01 allocation unless there has been a significant fall in their relative performance or the number of council houses they own has fallen substantially through partial stock transfers or demolitions.
No changes were proposed or are being made to the Housing Needs Index used in allocation of resources to registered social landlords, beyond the usual annual data updating.
A list of the respondents to the Consultation Paper is available in the House Library and Members can view individual responses in the Department's Library. I am arranging for details of the 2001–02 indices for each authority to be placed in the Library of the House.