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Rent Rebates

Mr. McNamara: To ask the Secretary of State for the Environment, Transport and the Regions (1) what proposals he has to reimburse local authorities in full for current and future rent rebate expenditure; [115387]

Mr. Mullin: There are two parts to housing subsidy: housing element and rent rebate element. Most authorities show a surplus on their housing element--that is their assumed rental income covers assumed costs. Where there is a surplus on housing element for an authority, we reduce the size of the rent rebate element by an equivalent amount.

Other than in those cases where rent rebate subsidy limitation applies, local authorities are fully reimbursed for rent rebate expenditure. The effect of limitation is that

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if an authority increases its average rent above the limit rent level, it receives additional rental income only from those tenants not receiving rent rebate.

This accounting arrangement reflects the different subsidy provisions which apply to different tenures. Local authority rents are generally lower than housing association or private sector rents, so it is not the case that council tenants are treated less favourably than other tenants. We intend to replace the current system with one that is easier to understand and which will avoid offsetting one expenditure stream against another and avoid the present confusion. The necessary legislation will be introduced as soon as parliamentary time permits.

We are currently consulting on the detail of our proposals on how to structure and operate a new system for redistributing resources under resource accounting. We have also announced that the proposed major repairs allowance (MRA) will be introduced from April 2001 to meet the cost of keeping housing stock in good condition. We expect that there will be fewer surpluses when the MRA is introduced and that will itself ease concerns about the system.

No decisions have yet been taken on the level of funding that will be available. This will form part of the discussions in the forthcoming spending review.

Housing Revenue (Subsidy)

Mr. McNamara: To ask the Secretary of State for the Environment, Transport and the Regions what was the total amount of housing revenue account subsidy paid to local authorities in 1998-99. [115399]

Mr. Mullin: The total amount of housing revenue account subsidy paid to local authorities in 1998-99 was £3,371 million.

Mr. McNamara: To ask the Secretary of State for the Environment, Transport and the Regions what is the estimated subsidy for the housing revenue account of local authorities for the years (a) 1999-2000 and (b) 2000-01. [115401]

Mr. Mullin: Our forecasts of housing revenue account subsidy are as follows:

£ million
(10)Housing revenue account subsidy
1999-20003,190
2000-013,146

(10) Estimated


Disabled Drivers

Mr. Oaten: To ask the Secretary of State for the Environment, Transport and the Regions when his Department will implement regulations covering changes to disabled drivers' badges and clocks. [116297]

Mr. Hill: I refer the hon. Member to my reply of 10 March 2000, Official Report, columns 834-35W, to my hon. Friend the Member for Hemel Hempstead (Mr. McWalter).

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I also announced on 18 November 1999 that the Orange Badge scheme is to be reviewed this year, and we will be looking at the eligibility criteria as well as the administration and enforcement of the scheme.

Regional Planning Guidance

Mr. Pond: To ask the Secretary of State for the Environment, Transport and the Regions when he intends to publish his response to the recommendations of the panels which conducted the public examinations of the draft regional planning guidance notes for East Anglia and the South-East; and if he will make a statement. [116564]

Mr. Raynsford: My right hon. Friend the Deputy Prime Minister has today published for consultation Proposed Changes to the Draft Regional Planning Guidance (RPG) for East Anglia and to the Draft RPG for the South-East.

On 7 March my right hon. Friend set out a new approach to planning for housing provision and made a preliminary announcement about housing in the South-East. The Proposed Changes to the draft RPG for East Anglia reflect the principles and priorities set out in that statement. They aim to support economic growth and regeneration, while protecting and enhancing the region's environment. They endorse the housing target proposed by SCEALA (the Standing Conference of East Anglia Local Authorities) of around some 9,600 additional dwellings a year as the starting point for the plan, monitor and manage approach. The Panel recommended that at least 40 per cent. of these new dwellings should be on previously-developed land. We are proposing a 50 per cent. target initially. This takes account of the likely availability of such land in a largely rural region.

We endorse SCEALA's view that development should be concentrated in the cities and larger towns. This is consistent with our policies for urban renaissance and the better use of land.

Cambridge now has world status as a centre for high-tech, knowledge-based industry. The emphasis must be on enabling the development of these industries while safeguarding the City's special character. However, we share the Panel's concern at the non-sustainable nature of much recent development around Cambridge, associated with increased car dependence and a lack of affordable housing. Building on the Panel's recommendations, we are proposing a sequential approach to development, looking first at the capacity of Cambridge, then possible urban extensions, then a new settlement--always considering brownfield land first.

We have accepted the Panel's recommendation for a review of the Cambridge Green Belt as an essential part of the process of finding sustainable locations for development. It should be carried out by the local authorities, with any changes taken forward through the review of development plans.

The integration of development and transport is at the core of our approach to regional planning. Our programme of multi-modal transport studies reflects the strategic priorities identified by SCEALA. The Minister responsible for roads announced on 3 February that the A11 Roudham Heath to Attleborough scheme was to be brought forward to start in 2000-01. In further recognition of the strategic priorities we are adding three schemes to

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the targeted programme of improvements at an estimated cost of £53 million: A11 Fiveways to Thetford and Attleborough Bypass Improvements, already in preparation, and A47 Thorney Bypass. The A11 schemes will complete a high-quality route to Norwich, improving access to Great Yarmouth and Lowestoft. Thorney Bypass will bring safety and environmental benefits for the local community, and will remove a bottleneck on a strategic east-west route.

On 7 March, my right hon. Friend announced the overall housing numbers for the South-East region and the target for the use of recycled land. The Proposed Changes, published today, set out detailed proposals including a clear spatial strategy for the region.

The Proposed Changes recognise the national priority for regenerating the Thames Gateway area, and the need within the region to promote the Priority Areas of Economic Regeneration and to facilitate the continuing economic success of the area to the west of London, while maintaining environmental quality, and of London as a World City. The policies are designed to help achieve an urban renaissance and the improved economic and social viability of the rural areas, while protecting and enhancing the countryside.

The Proposed Changes set out priorities for transport investment and study, and include revised parking standards. However, they make clear that more work needs to be done to develop the Regional Transport Strategy to facilitate the economic performance of the region, achieve more sustainable patterns of movement and to combat congestion. The documents include an illustrative distribution of the housing numbers to county areas, a point on which we have specifically sought the views of SERPLAN (the South-East Regional Planning Conference). We consider that there is scope for potential growth areas at Milton Keynes, Ashford and, in the longer term, at Stansted. The potential of these areas will now be the subject of studies with the Regional Planning Bodies, the local authorities concerned and other interested parties.

The consultation period on both sets of Proposed Changes will be for 12 weeks, ending on 19 June. Copies of the relevant documents have been placed in the House Library and made available to the two region's MPs.


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