Clause 11 — Use of Capital Receipts

Part of Local Government Bill – in the House of Commons at 11:30 pm on 17th September 2003.

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Photo of Philip Hammond Philip Hammond Shadow Minister (Communities and Local Government) 11:30 pm, 17th September 2003

The Minister is seeking to grab £120 million—a relatively small sum in the grand scheme of the Government's housing programme—from about 34 authorities that have managed their affairs in such a way that they are debt-free and are situated in areas where capital receipts from housing right to buy are relatively high, which suggests a need to replace units of social housing that have been sold. He is seeking to take those capital receipts and redistribute them to areas that have been less prudent. I argue that, in many cases, such areas will be in less need of affordable housing in the present housing crisis than the areas to which the receipts accrue.