asked the Secretary of State for the Environment what will be the effect in London of the cuts in the Housing Corporation announced by the Chancellor of the Exchequer in his December statement.

Following the Chancellor of the Exchequer's December statement on public expenditure cuts, the Housing Corporation has authorised 75 per cent. of its original 1977–78 programme. In London this represents 6,900 houses. My right hon. Friend hopes to make an announcement very shortly about the Corporation's negotiations to obtain private loan finance, which should enable it to increase this programme.