asked the Minister for the Environment, in respect of local authority housing, the amount of subsidisation of local authority rents for each year from 1978 to 1988 inclusive; and if he will make a statement on the matter.
Written Answers. - Local Authority Rents Subsidisation.
187.
For the period 1978-1987 the level of rent subsidy received by local authority tenants is calculated by reference to the loan charge subsidy on the provision of local authority housing and the shortfall incurred by local authorities on the maintenance and management of their rented housing stock as against rental income. Following are the subsidy figures for 1978-1987:
|
1978 |
1979 |
1980 |
1981 |
1982 |
1983 |
1984 |
1985 |
1986 |
1987 |
|
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
£m |
|
53.2 |
65.6 |
77.6 |
101.0 |
121.1 |
153.6 |
170.9 |
198.6 |
208.0 |
214.4 |
On 1 January 1988 the loan and loan charge subsidy system for funding local authority housing was terminated and a grant payment for the programme is now made on an annual basis. The Exchequer, however, must continue to meet the cost of borrowings to fund the local authority housing programme, and if the subsidy had continued as previously it would have amounted to about £205 million in 1988. The shortfall on maintenance and management is provisionally estimated at about £20 million in 1988.