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Housing Revenue Accounts (Rate Poundage)

Volume 981: debated on Wednesday 26 March 1980

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asked the Secretary of State for the Environment if he will be issuing guidelines to local authorities regarding a maximum rate poundage that they can levy towards funding their housing revenue accounts.

Will not the Minister agree that, unless some aid or relief from rate poundage is given to the 50 per cent. of council house tenants who have to pay the full rent, the £2·10p increase means that these people will be the hardest hit section of the community as a result of the Government's public expenditure cuts?

That is not the only source for meeting the defict on the HRA. I believe that local authorities will want to look carefully at their overall administration and running costs in view of the figures on manpower that my right hon. Friend has published.

Why should every housing authority now not plan to reach a situation where the housing revenue account, given one year with another, is basically in balance?

As my hon. Friend will be aware, that is one of the reasons why we thought it right to abolish the no-profit rule in the legislation before Parliament.