Housing

Part of Schedule 6 – in the House of Commons at 10:37 pm on 25 July 1984.

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Photo of Mr Ian Gow Mr Ian Gow , Eastbourne 10:37, 25 July 1984

I shall be comparing the £3 billion with various other figures. I hope that the hon. Gentleman will allow me to do that. He and some of his hon. Friends described the statement made by my right hon. Friend the Secretary of State a week ago as a moratorium. I should make it clear that local authority capital expenditure is subject to a cash limit, as was well understood when the cash limit for the current year was set. A week ago my right hon. Friend appealed to local authorities for restraint. That certainly was not a statutory moratorium, and he invoked no statutory powers. He asked for restraint by local authorities to achieve not a cut but to remain within the limits for local capital expenditure in the current year.

Capital expenditure by local authorities on housing was just under £2 billion in 1981–82. By 1982–83 it had risen to nearly £2·5 billion. Last year it was more than £3 billion —one third higher in cash terms than in 1978–79 when the Labour Government were in power.

The nature of housing expenditure has also changed markedly in the past few years. Much more is being spent than in the past on renovating existing stock, both public and private. In 1978–79, the last year for which the Labour Government were responsible, expenditure on improvement grants was £90 million. In the year ended 31 March 1983, total expenditure on improvement grants was £430 million. We do not yet have the final figures for the year ended 31 March 1984, but total expenditure in that year exceeded £900 million.

The Government have been criticised because the exceptional arrangements announced by my right hon. and learned Friend the then Chancellor on 9 March 1982 were not continued beyond 31 March 1984. Although you were not Speaker at that time, Mr. Speaker, I believe that you presided over the House during my right hon. and learned Friend's Budget statement on 9 March 1982. As you will doubtless recall, he said that the exceptional arrangements were to continue only until 31 December 1982. Having extended those arrangements well beyond that date, until 31 March 1984, we are now rebuked by the very party which spent only £90 million on improvement grants when it was in power.