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Housing: Finance

Volume 462: debated on Thursday 28 June 2007

To ask the Secretary of State for Communities and Local Government how much (a) capital and (b) revenue funding the Government provided to each local authority in England for (i) housing and (ii) regeneration purposes in the last year for which figures are available. (143668)

Capital funding for local authority housing is provided through the Housing Revenue Account (HRA) subsidy system in the form of supported capital expenditure (SCE) and the major repairs allowance (MRA). SCE is the level of borrowing for capital purposes that is supported by the Government through the HRA subsidy. This value is based on the Regional Housing Boards' allocations. MRA represents the estimated long-term average amount of capital spending required to maintain a local authority’s housing stock in current condition. The capital funding includes an element for regeneration but that is combined with the decent homes programme in the private sector. There is also an element of non-HRA funding for local authorities.

Revenue funding for local authority housing is provided in the form of HRA Subsidy and Formula Grant. HRA subsidy refers to the entitlement local authorities receive from Government to support their housing programs. 2005-06 is the latest year for which audited figure are available. Housing is one of the services supported by formula grant. Formula grant, which comprises Revenue Support Grant, redistributed business rates and principal formula Police Grant, where appropriate, is an unhypothecated block grant, i.e. authorities are free to spend the money on any service. For this reason, and because of the method of calculation, particularly floor damping, it is not possible to say how much grant has been provided for a particular service. Tables displaying the 2005-06 HRA subsidy and 2005-06 capital funding for each local authority have been placed in the Library of the House.

For regeneration purposes, there is no local authority wise breakdown available. The information is compiled on a program-specific basis. Departmental funding for regeneration projects in 2005-06 is tabled as follows.

Regeneration programmes: departmental funding spent on regeneration projects in 2005-06

£ million

Programme

Revenue

Capital

Coalfields funding (Enterprise Fund and Regeneration Trust)

10.715

8.500

Commission for Architecture and the Built Environment

6.651

Design Awards

0.052

English Partnerships (including Commission for the New Towns)1

-51.014

539.195

European Regional Development Fund

51.242

175.527

Groundwork & National Urban Forestry Unit

3.698

10.352

Housing Market Renewal Fund

0.911

302.542

Lea Valley Regional Park

0.458

Mersey Basin

0.520

New Deal for Communities

168.260

100.333

New Ventures Fund

76.558

1.031

Neighbourhood Renewal Fund

525.000

Other Growth Areas

8.013

70.793

Regional Development Agencies (including London Development Agency)

545.632

941.082

Special Grants Programme

2.783

Thames Gateway

12.880

149.005

Green Flags

0.356

Liveability Performance

1.394

0.523

Academy for Sustainable Communities (formerly Urban Design Skills)

2.282

1 Negative spend against English Partnerships is due to profit on sale of land exceeding revenue spend.