asked the Secretary of State for the Environment whether he will allow expenditure incurred by local housing authorities on the provision of bed and breakfast accommodation, by virtue of the requirements of the Housing (Homeless Persons) Act 1977, to be charged to the housing revenue account and not as at present to fall directly as an expense on the council rate account.

No, my view is that such expenditure is best met out of the general rate fund. Meeting the expenditure out of the housing revenue account would entail the burden being borne in whole or in part by local authority tenants, and there is no reason why they should be expected to shoulder financial responsibility.