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1 Sept 2003 : Column 680W—continued

Licensing Laws

Ross Cranston: To ask the Deputy Prime Minister what plans he has to alter the rules governing planning use class orders following the changes to the licensing laws in the Licensing Act 2003; and if he will make a statement. [127146]

Keith Hill: I refer to the Written Statement made by my hon. Friend for Harrow, East (Mr. McNulty), on 4 March 2003, Official Report, column 79WS, which stated that it is the Government's intention to change the Use Classes Order so as to put pubs and bars into a separate class. The effect of this change will be to require an application to be made for planning permission in respect of any proposal to change use of an existing building into a pub or bar.

I expect to make a full statement on the outcome of our consultation on proposals for changes to the Use Classes Order early in the autumn session.

Local Authorities (Borrowing)

Mr. Austin Mitchell: To ask the Deputy Prime Minister what proposals he has for allowing councils to borrow on the security of (a) council housing stock, (b) rent income from council housing and (c) service charges on council housing; and whether he intends that such borrowing would have to be approved by (i) his Department and (ii) HM Treasury. [126585]

Keith Hill: The Office of the Deputy Prime Minister does not consider it prudent for local authorities to borrow against the security of their capital assets, since the potential seizure of property by creditors would pose an unacceptable threat to the delivery of services. Similarly it is not proposed to allow authorities to sell future streams of revenue such as rents, in return for immediate one-off payments. The Local Government

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Bill will allow authorities to borrow without Government consent, provided that they can afford to service the debt from their own revenues, which could include housing income.

Local Authority Housing

Mr. Betts: To ask the Deputy Prime Minister what his policy is on whether all local authority tenants will continue to have a choice about who their landlord is. [126167]

Keith Hill: The Office of the Deputy Prime Minister's policy is that tenants should be at the heart of decision making on the future of their homes. In delivering decent homes local authorities will need to fully engage with tenants on deciding what the best option is for all stakeholders.

There are four options for local authorities to deliver the decent homes target: investment in the stock by the local authority using existing resources, PFI, setting up an Arms Length Management Organisation (ALMO) or stock transfer. The first three of these leave the stock in local authority ownership.

Ministerial Visits

Mr. Pickles: To ask the Deputy Prime Minister which local authorities he has visited since May 2002. [121812]

Yvette Cooper: My right hon. Friend the Deputy Prime Minister regularly visits local authority projects and meets local authority councillors and officers, since May 2002 the Deputy Prime Minister has visited Allerdale, Barking and Dagenham, Birmingham, Bournemouth, Bradford, Brighton, Coventry, Dartford, Doncaster, Eden, Gateshead, Greenwich, Harlow, Harrogate, Kensington and Chelsea, Kingston-upon-Hull, Lambeth, Leicester, Liverpool, Manchester, Milton Keynes, Medway, Newcastle, North Lincolnshire, Salford, Sefton, Watford, Windsor and Maidenhead and York.

Local Government Act

Dr. Whitehead: To ask the Deputy Prime Minister how many applications he has received from local authorities under sections 2 and 5 of the Local Government Act 2000; how many applications have been determined by his Department; and what mechanisms are in place for dealing with such applications outside arrangements made in the course of the negotiations of local public service agreements. [126914]

Keith Hill: Nine applications or expressions of interest have been received for action under section 5 of the Local Government Act 2000. Applications are assessed by the Department responsible for the relevant area of policy in conjunction with this Office. One application has so far been addressed through provision made in primary legislation. Others are subject to on-going discussions with the relevant local authorities.

Large Scale Voluntary Transfers

Mr. Austin Mitchell: To ask the Deputy Prime Minister how many local authorities have implemented large scale voluntary housing transfers (LSVTs) since

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1997; how many have been rejected by tenants; how many have put up proposals for large scale voluntary transfers; and how many have not yet registered their interest. [126421]

Keith Hill: 86 local authorities have completed 117 large scale voluntary transfers since 1 April 1997. During this period, tenants have not supported the transfer proposal in 23 ballots. There are 38 transfer schemes in progress. Housing transfer is one of three options available to authorities for meeting the decent home target where additional resources are required. By July 2005, all stock-owning authorities are required to have completed an investment option appraisal, with the full involvement of tenants, to decide on the best means of meeting the decent home target for their stock. These investment option appraisals must be signed off by the relevant Government Office for the Regions.

Mr. Austin Mitchell: To ask the Deputy Prime Minister (1) how many applications for large scale voluntary transfers of council housing have been accepted by his Department; and what arrangements at what cost have been made in each case for write-off or reduction of overcharging housing debt; [126422]

Keith Hill: The Office of the Deputy Prime Minister has accepted 268 applications for large-scale voluntary transfer of council housing since 1988. When an authority transfers all its housing stock it is expected to use the receipt to meet any debt liability. Of the 173 transfers that have taken place to date, there have been 10 transfers where the receipt was insufficient and the office made an overhanging debt payment. The payments are tabled as follows:

Financial yearLocal authority£ million
1999–2000Burnley21.0
2001–02Coventry111.7
2001–02Calderdale64.6
2001–02Blackburn with Darwen78.9
2002–03St. Helens87.2
2002–03Redcar and Cleveland25.4
2002–03Knowsley126.1
2002–03Carlisle18.0
2002–03Bradford182.8
2002–03Walsall108.7

The projected overhanging debt payments have reduced to £24 million for 2003–04 and are estimated at £500 million for 2004–05. These are likely to change as details of transfer proposals are finalised. These payments reflect the liability the office would have had to meet as ongoing Housing Revenue Account (HRA) subsidy if these authorities retained their stock. In respect of the authorities liable to require overhanging debt payments over the two years concerned, the total estimated provision for the Major Repairs Allowances (MRA) within the Housing Revenue Account subsidy is £124.2 million in 2003–04 and £122.3 million in 2004–05.

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Mr. Austin Mitchell: To ask the Deputy Prime Minister what proposals he has for issuing to each tenant balloted in large scale voluntary housing transfers a statement of the benefits they will receive from a yes vote and the extra spending it will bring for repairs and improvements. [126423]

Keith Hill: None. Local authorities are required by section 106, and schedule 3A to, the Housing Act 1985 to serve notice of the details of the transfer proposal, including the identity of the new landlord and the likely consequences of the disposal for the tenant, to all secure and introductory tenants.

Mr. Austin Mitchell: To ask the Deputy Prime Minister what sanctions are imposed on housing associations which do not fulfil promises made to tenants in large scale voluntary transfers of council housing; what redress is available to tenants in the event of such transfers; and how many complaints have been made to his Department about such purchases in the last five years. [126425]

Keith Hill: The Housing Corporation is responsible for regulating all Registered Social Landlords (RSLs), commonly known as housing associations. RSLs are required to adhere to the Housing Corporation's

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Regulatory Code and guidance which sets out minimum standards in the three areas of governance, financial viability and management of services to tenant. It also has a number of general and specific powers to take action is respect of housing associations.

All housing associations registered with the Corporation must have procedures to deal with complaints from tenants fairly and effectively. Once tenants have been through this procedure, they can bring the matter to the attention of the Independent Housing Ombudsman. There is no formal procedure for complaints to be made to the Office of the Deputy Prime Minister or investigated by it.

Mr. Austin Mitchell: To ask the Deputy Prime Minister how much was paid to each local authority per council house that has opted for large scale voluntary transfer of its council stock in each of the last two years. [126558]

Keith Hill: To reflect the intended continued use of the properties for social housing the price paid to each local authority per council house accords with a Tenanted Market Value (TMV) rather than an open market value. Tabled are the price paid per dwelling in each large scale voluntary transfer since April 2001 in accordance with this valuation method.

Price per dwelling in large scale voluntary transfers since April 2001

AuthorityDate of transferPrice per dwelling (£)(5)
Derbyshire Dales4 March 20027,616
Chelmsford BC11 March 200211,530
East Hertfordshire DC (split transfer)18 March 200211,937
13,725
Erewash BC25 March 20026,460
Reigate and Banstead BC25 March 200213,212
St. Edmundsbury24 June 20027,489
Vale Royal BC1 July 20027,462
St. Helen's MBC1 July 20021,974
Redcar and Cleveland BC15 July 20025,180
Knowsley MBC15 July 20021,794
LB Waltham Forest30 September 2002832
LB Hackney cc sheltered stock14 October 2002-1,514
LB Harrow14 October 2002-3,642
Manchester cc Langley Estate18 November 2002-342
County of Herefordshire C25 November 20026,945
Carlisle CC9 December 20021,803
Rushcliffe BC20 January 200312,934
Liverpool CC Eastern Fringe (south)23 January 20031,800
Liverpool CC Eastern Fringe (central)30 January 2003-1,378
City of Bradford24 February 20032,831
Amber Valley BC24 February 20035,077
Crewe and Nantwich BC10 March 20036,181
Liverpool CC10 March 2003-728
Oldham MBC Limeside (Hollins/The Avenues)17 March 2003-1,577
Walsall MBC (majority of stock)27 March 20031,026
Walsall MBC (tenant managed stock)27 March 2003-0.03
Craven DC31 March 20035,201
Forest of Dean DC31 March 20036,849
North Hertfordshire DC31 March 20033,128

(5) Negative value figures indicate a dowry payment from the local authority to the acquiring registered social landlord.


Mr. Austin Mitchell: To ask the Deputy Prime Minister whether consultants and tenants' friends employed on large scale voluntary transfer proposals for council housing are (a) approved, (b) nominated and (c) paid for by his Department; what steps he takes to ensure their impartiality; and whether any have recommended that the large scale voluntary transfer should not proceed. [126561]

Keith Hill: Both consultants and tenant advisers are employed and paid for by the local authority. Office of the Deputy Prime Minister guidance is that they should be chosen through a competitive process. The role of the tenant adviser is to offer impartial advice and support to the tenants and leaseholders about the proposals being draw up. This is set out in guidance on the recruitment

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and role of the tenant adviser issued by the Office of the Deputy Prime Minister.

The nature of any work being undertaken by a consultant will depend on the nature of the contract with the local authority. The Office of the Deputy Prime Minister would not necessarily know where a consultant had advised an authority.

Mr. Austin Mitchell: To ask the Deputy Prime Minister (1) whether publicity polling and consultancy fees for voluntary transfers of council housing stock can be financed out of the local housing revenue account; [126565]

Keith Hill: Expenditure incurred in carrying out the statutory consultation required under section 106A of the Housing Act 1985, including the cost of any ballot, is considered to be in connection with the management of dwellings held within the Housing Management Account and therefore must be charged to that account.

No payment is made by central Government towards the cost of such consultation and figures for the total expenditure on this by local authorities are not held centrally and could be provided only at disproportionate cost.


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