"Sustainable Communities: building for the future", we have decided to abolish LASHG to allow a more strategic use of resources. The change is to take effect from 1 April 2003.

We understand the concerns that have been raised over the timing of this change, and recognise the difficulties this is causing for the planning of schemes coming forward over the next few months. However, it would be indefensible to retain the current arrangements, at a time when there are pressing housing priorities that are not getting sufficient funding.

We are also clear that there should be no hiatus in housing investment. We are therefore putting in place transitional arrangements to cover schemes that could have gone ahead in 2003–04 if we had continued with a £500 million provision for LASHG.

The transitional arrangements will be as follows:

for debt-free authorities, provision will be increased from £175 million to £275 million; the money will be allocated by the Housing Corporation direct to the RSL.

for with-debt authorities, revenue support of up to £11 million will be provided to compensate them for the loss of investment income (at an interest rate of 4 per cent.) they would have expected on repayments from the Housing Corporation for schemes supported by their own resources; this will fund up to a further £275million of investment in 2003–04; this money will be paid through a special grant under section 88b of the Local Government Finance Act 1988.

These arrangements will cover schemes which will have already started by 31 March 2003. We are also extending the deadline for submitting bids for new schemes to the Housing Corporation for 3 months to 30 June 2003, provided that schemes have planning permission, are approvable and are programmed to draw down the start-on-site tranche of grant by the end of January 2004. We do however need to ensure that the funding limits are not exceeded. If the total claims submitted by 30 June exceed the money available, the Housing Corporation will prioritise schemes with the Government Offices in terms of their contribution to the regional housing priorities. Transitional funding will therefore support investment in housing of up to £;550 million. This is an increase of £50 million on the provision for LASHG in 2002–03, and is higher than in any previous year. It is fully in line with the measures we have set out in the Sustainable Communities Plan to increase substantially the resources made available for delivering sustainable communities for everyone.

In the first, the Unit will work with other Government Departments to look at what more might be done to help people in the most deprived areas in England move into jobs.

The Unit will consider whether existing policies are being delivered as effectively as possible in these areas. They will look in particular at whether more might be done to promote two ways of entering work: leaving the informal economy for legitimate jobs and businesses; and moving into self-employment and enterprise.

I have also asked the Unit to work with other Government Departments to consider what more can be done to reduce social exclusion among adults with mental health problems.

The Unit will look at how to improve rates of employment for adults with mental health problems, through support both in taking up and in retaining work. The Unit will also consider how to promote greater social participation and better access to services for this group.

I have asked that the Unit report to Ministers on these two new topics early next year.

Under current legislation the courts do not have the power to stop an offender who has been convicted of sexual offences against children from travelling overseas. We believe this is wrong and that it should be addressed. We therefore intend to bring forward a Government Amendment to the Sexual Offences Bill that will introduce a new foreign travel banning order that will enable courts, in certain circumstances, to prohibit those convicted of a sexual offence against a child from travelling to specified countries. We hope to introduce this amendment by the end of March.

The new order would be a civil preventative order made following an application from a chief officer of police. It would apply to those convicted of a sexual offence against a child under 16 either in the UK or overseas. The order would be available where the court was satisfied that it was necessary to protect children overseas from serious sexual harm by the offender and that there are no other, equally effective means, to prevent such harm. The orders would last for up to six months renewable on further application from the police.

In addition to introducing the proposed foreign travel banning order, we will be consulting with interested parties on the arrangements for the notification of foreign travel by "registered" sex offenders. We are aware that this issue has generated considerable interest. We will consult quickly on this issue with a view to making the Government's intentions clear by the end of March. This will enable our intentions to be considered and debated fully during the passage of the Sexual Offences Bill through Parliament.

A paper with further details on the Government's proposals has been placed in the Library.