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Correction to Parliamentary Question

Volume 477: debated on Friday 20 June 2008

I regret to inform the House that the answer I gave to parliamentary question 165558 from my hon. Friend the Member for Great Grimsby (Austin Mitchell) on 18 December 2007 (Official Report, columns 1305-06W), was printed incorrectly in the Official Report.

The answer should read:

A table showing the national level of housing revenue account (HRA) subsidy from 1995-96 to 2005-06—the last year for which audited data is available—is as follows:

The table shows the value of the ‘bricks and mortar’ element of HRA subsidy. Prior to 2004-05, HRA subsidy also contained a rent rebate element. This is omitted from the table to ensure consistency with post 2004-05 data. Prior to 2004-05, surpluses in the ‘bricks and mortar’ element were applied to the cost of rent rebates for local authorities.

HRA subsidy (£)

1995-96

-390,050,431

1996-97

-563,028,455

1997-98

-668,307,497

1998-99

-869,992,311

1999-2000

-1,040,869,030

2000-01

-1,123,786,228

2001-02

351,105,009

2002-03

252,059,142

2003-04

191,153,240

2004-05

77,994,764

2005-06

249,427,865

Pre-1995 to 1996 data are available only at disproportionate cost.

As part of the self-financing modelling exercise, some broad forecasts of future HRA subsidy entitlement were generated at a national level. These forecasts were based upon a number of assumptions about factors such as the number of dwellings in the HRA subsidy system, interest rates and rates of inflation. The forecasts are highly sensitive to changes in any of these assumptions. It is based upon the 2007-08 HRA subsidy system.

The forecast subsidies generated were as follows:

HRA subsidy (£ million)

2008-09

-194

2009-10

-216

2010-11

-303

2011-12

-421

2012-13

-424

2013-14

-376

2014-15

-398

2015-16

-434

2016-17

-476

2017-18

-543

2018-19

-611

2019-20

-680

2020-21

-750

2021-22

-822

2022-23

-894