Select Committee on Environment, Transport and Regional Affairs Minutes of Evidence

Explanatory Memorandum from the Department of the Environment, Transport and the Regions (EST 98A)

Section P—Other private housing renewal


Final net provision 1996-97241,322
Provision sought 1998-99171,282
Change (Per cent)-29 Per cent
Final net provision 1997-98196,269
Provision sought 1998-99171,282
Change (Per cent)-13 Per cent

Annual Report 1998—Chapter 3, paragraphs 3.15-3.17; figure 3b

  Local authorities were given greater discretion in the use of private sector renewal grants and, in particular, mandatory renovation grants were replaced by discretionary grants. As a result it was possible to reduce provision from the 1996-97 level to 1998-99. Local authorities are also able to use credit approvals issued as part of the Capital Receipts Initiative for private sector renewal purposes.

Section Q—Other housing


Final net provision 1997-9898,822
Provision sought 1998-9970,270
Change (Per cent)-29 Per cent

Annual Report 1998—Chapter 3, paragraphs 3.28-3.29 and 3.36; figure 3b

  The reduction largely reflects the anticipated need for a greater proportion of ERCF spending to be on post-transfer dowries to registered social landlords rather than pre-transfer expenditure by local authorities.
Section R—Single Regeneration Budget


Final net provision 1996-97725,480
Provision sought 1998-99575,141
Change (Per cent)-21 Per cent
Final net provision 1997-98714,918
Provision sought 1998-99575,141
Change (Per cent)-20 Per cent

Annual Report 1998—Chapter 5, paragraphs 5.6-5.18; Figures 5a-5d and 5f

  The main reason for reduced provision from 1996-97 and 1997-98 to 1998-99 is the reduction in pre SRB commitments by the SRB. Most City Challenge schemes were completed by March 1998.
Section U—ERDF projects not funded by or in advance of EC receipts


Final net provision 1996-9711,318
Provision sought 1998-999,500
Change (Per cent)-16 Per cent
Final net provision 1997-983,000
Provision sought 1998-999,500
Change (Per cent)+217 Per cent

Annual Report 1998—Chapter 5, paragraphs 5.28-5.34, Figures 5k-5o

  Additional provision due to unanticipated problems in the timing of receipts from the EC proved necessary in 1996-97 at the Spring Supplementary stage. This resulted in an increase in provision in 1996-97 of £4.818 million. However, for 1998-99 there has been a transfer in provision from the Transport Industries Vote to an increase in the number of projects where it is known that EC receipts will not be received or they will only be received after expenditure is required.
Section V—Housing Corporation


Final net provision 1996-97388,000
Provision sought 1998-99500,000
Change (Per cent)+29 Per cent

Annual Report 1998—Chapter 3, paragraph 3.23

  The increase reflects the anticipated increase in use of Local Authority Social Housing Grant (LASHG) by local authorities, funded by the Capital Receipts Initiative. Section V provision in 1997-98 was higher than in 1996-97 as it included £93 million as part of the cost of repaying the National Loans Fund following the sale of the Housing Corporation loans portfolio.
Section W—HRAS (Capital Receipts Initiative element)


Final net provision 1996-970
Provision sought 1998-9934,546
Change Per centna
Final net provision 1997-980
Provision sought 1998-9934,546
Change Per centna

Annual Report 1998—Chapter 3, paragraph 3.11; table A11

  The capital work by local authorities funded by the Capital Receipts Initiative (CRI) has lead to increases in some current spending, including HRAS. This new Vote Section records that as part of the overall CRI expenditure.

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