HC Deb 31 October 2000 vol 355 cc406-7W
Mr. Leslie

To ask the Secretary of State for the Environment, Transport and the Regions when he will be consulting local authorities on his proposals for the Housing Revenue Account and HRA Subsidy for 2001–02; and if he will make a statement. [135940]

Mr. Raynsford

We are issuing details of our proposals for the Housing Revenue Account (HRA) and HRA Subsidy for 2001–02 to all local housing authorities in England today. We are asking for comments by 30 November. Copies of the consultation documents are being placed in the Library of the House.

Next year will see the introduction of resource accounting within the HRA, including the new Major Repairs Allowance (MRA). Resource accounting is part of the new, more businesslike approach to local authority housing and the delivery of better quality services. The MRA will provide resources through the HRA subsidy system, of some £1.6 billion next year, to enable all authorities to maintain the condition of their housing stock over the longer term. The resources are being drawn from the significantly increased provision for capital expenditure by local authorities announced as part of the Government's spending plans for 2001–02 to 2003–04 by my right hon. Friend the Chancellor of the Exchequer on 18 July.

Our proposals for 2001–02 also include an additional £67 million to spend on day-to-day housing maintenance; the third year in which we have proposed increases. In addition, there will be further resources next year of £15 million to help authorities introduce resource accounting, with another £6 million to help tenants get involved in managing their homes through tenant participation compacts.

We are combating years of under-investment in the fabric of our council stock. We are determined to improve the quality of council housing and the services to tenants.

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