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Local Government Finance

Volume 459: debated on Thursday 26 April 2007

To ask the Secretary of State for Communities and Local Government pursuant to the answer of 16 February 2006, Official Report, column 2239W, on local government finance, in which years since 1997 the Government were required to make up a shortfall on local authority housing revenue accounts between total rental income and the sources of expenditure to which the answer refers. (133352)

[holding answer 23 April 2007]: The Housing Revenue Subsidy System has received a net contribution from the Exchequer in each financial year since 2001-02, when the Major Repairs Allowance was introduced to help councils do more to repair and refurbish council homes.

The net subsidy position for each year between 1997-98 and 2005-06 (the last year for which we have audited figures) is given in the following table, negative figures represent net surpluses for that year and positive figures show net deficits, which were paid by the Exchequer.

£

Net housing element

1997-98

-668,307,497

1998-99

-869,992,311

1999-2000

-1,040,869,030

2000-01

-1,116,331,437

2001-02

351,105,009

2002-03

252,059,142

2003-04

191,153,240

2004-05

78,877,384

2005-06

229,558,982

To ask the Secretary of State for Communities and Local Government what her Department’s allocation was for local authorities’ allowances for management, maintenance and major repairs in (a) 2005-06 and (b) 2006-07; what they are projected to be in 2007-08; and what the total (i) service debt charges and (ii) rental income paid to local authorities were in each year. (133360)

[holding answer 23 April 2007]: Details of management, maintenance and major repairs allowances are given in the following table:

£

Status

Financial year

Management allowance

Maintenance allowance

Major repairs allowance

Audited

2005-06

1,168,254,149

2,052,043,828

1,357,380,814

Provisional

2006-07

1,207,333,911

2,119,654,860

1,313,506,485

Estimated

2007-08

1,253,322,310

2,203,103,351

1,351,978,810

Data on actual rental income and expenditure on debt charges are only available for 2005-06 as these are dependent upon audited returns from local authorities and are shown as follows.

Amount (£)

Debt charges

3,013,330,952

Rental income from dwellings

6,019,037,529

Other rental income

189,132,296

Audited returns for 2006-07 and 2007-08 are not due until December 2007 and December 2008 respectively.