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Local Government Expenditure

Volume 885: debated on Wednesday 5 February 1975

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65.

asked the Secretary of State for the Environment whether he will make a statement amplifying the suggestion made in Circular 171/74 that in certain circumstances local authority repair and improvement programmes may have to be restricted as a result of the level of expenditure on municipalisation.

There is no such suggestion. Circular 171/74 asks local authorities to hold their next year's expenditure on maintenence and management, taken together, to the same amount per dwelling as in 1974–75 after allowing for unavoidable pay and price changes. This arises from the general need to contain expenditure and not from the municipalisation programme, though where that programme results in extra management expenses they will have to be contained within the limit proposed in Circular 171/74. For improvements to council owned dwellings each local authority will be authorised to spend an approved sum not directly related to its expenditure in 1974–75 but based on an assessment of the authority's needs in 1975–76.