HC Deb 26 February 2002 vol 380 cc1183-4W
Mr. Austin Mitchell

To ask the Secretary of State for Transport, Local Government and the Regions (1) what the annual level of national housing revenue accounts load debt was in each year from 1997–98 to date; and what the capital financing costs of that debt were; [37648]

(2) what estimate he has made of the cost of paying off all local authority historic housing debt. [37649]

Ms Keeble

Local authority debt is held and managed centrally within each authority. For the purposes of determining the Housing Revenue Account's (HRA) contribution to the cost of overall debt, a notional level of HRA indebtedness is calculated each financial year. This is known as the HRA credit ceiling. The table sets out the HRA credit ceiling at the start of each financial year, together with the associated capital financing costs, for financial years 1997–98 to 2001–02:

£ million
HRA credit ceiling Capital financing costs
2001–02 17,894 —1
2000–01 18,426 1,894
1999–2000 19,161 2,013
1998–99 19,620 2,149
1997–98 20,121 2,231
1 No data available for 2001–02 at present, it is estimated to be £1,793 million.

Repayment of an amount equivalent to the HRA credit ceiling will give rise to additional liabilities in respect of early redemption premiums, which will depend on the profile of each authority's own debt portfolio. It is therefore not possible to estimate the cost of repaying this debt.

Mr. Austin Mitchell

To ask the Secretary of State for Transport, Local Government and the Regions what the level of capital receipts from the sale of housing and other housing revenue assets was in(a) 1998–99, (b) 1999–2000 and (c) 2000–01. [37647]

Ms Keeble

The available information reported by local authorities is as set out:

Gross housing capital receipts of local authorities: England
£000
1998–99 1999–2000 2000–011
Sale of Fixed Assets 1,514,214 2,133,840 2,310,956
Repayments of grants and advances 106,966 97,187 94,964
Leasing disposals 9,208 17,840 27,144
Total 1,630,387 2,248,867 2,433,065
1 Figures for 2000–01 are provisional

Note:

Fixed Asset sales include housing stock sold under Right to Buy, and through Large Scale Voluntary Transfers (LSVTs).

Source: DTLR Capital Outturn Return (COR) forms.

Mr. Austin Mitchell

To ask the Secretary of State for Transport, Local Government and the Regions what plans he has to permit local authorities to redirect funds originating in their housing revenue accounts to(a) set up arm's length housing management organisations and (b) direct investment in municipally owned housing. [37646]

Ms Keeble

It is a matter for authorities to determine how to use the resources available to them in their housing revenue account. Authorities which are proposing to establish an arm's length organisation (ALMO) to manage their stock may apply for additional resources. If they are successful and meet the necessary standard, those resources are expected to be targeted on investment in the authority's stock. We have provided resources to enable additional investment of £460 million by ALMOs over the next two years.