HC Deb 27 March 2003 vol 402 cc357-8W
Mr. Austin Mitchell

To ask the Deputy Prime Minister what notice he gave to(a) housing associations and (b) local councils of his intentions to end the local authority housing grant; what consultations he held in each case; how many homes have been built by (i) housing associations and (ii) local councils using the grant since 1996; what estimate he has made of the effect of ending the grant on the provision of affordable homes for (a) key workers and (b) people on low incomes; and how many homes planned to be built will not now be built because of the ending of the grant. [102616]

Mr. McNulty

The Office of the Deputy Prime Minister consulted local authorities, the housing corporation, the national housing federation and other key figures in the housing world on the principle of abolishing local authority social housing grant (LASHG) last autumn. In the light of work on the "Sustainable Communities: Building for the Future", we decided to make this reform quickly—provided transitional funding arrangements were in place to ensure that well-advanced, good quality schemes were able to go ahead.

Local authorities use registered social landlords (RSLs) as the vehicle for building homes with LASHG. They do not use this grant to develop units themselves. The following table shows the dwellings completed in each year by RSLs using the grant: Dwellings completed:

  1. 1996–97: 9,609
  2. 1997–98: 10,152
  3. 1998–99: 9,929
  4. 1999–2000: 8,678
  5. 2000–01: 8,419
  6. 2001–02: 6,971

In my statement of 5 March I announced increased provision for transitional arrangements for LASHG. Transitional funding will now support investment in social housing of up to £550 million to £50 million more than we provided in 2002–03 from LASHG, and higher than in any previous year. The number of affordable homes to be built in 2003–04 using this funding will not be known until after 30 June 2003, which is the deadline for both with-debt and debt-free authorities to submit new schemes for 2003–04 to the housing corporation.

As my right hon. Friend the Deputy Prime Minister announced on 5 February, the measures set out in the "Sustainable Communities: Building for the Future" will provide £5 billion for more affordable homes over the next three years, including at least £1 billion for key worker housing, much of which will be distributed following advice from the regional housing boards, in line with regional housing strategies.