§ Sir George Young
Government support for housing associations in England is available in a number of forms.
The Housing Corporation provides development loan finance for housing associations from a cash limited approved development programme. For 1983–84 the cash limit is £624.4 million which, with £60 million of capital receipts, gives a gross programme of £684.4 million. For 1984–85, the cash limit will be £617 million, plus £70 million of receipts giving a gross programme of £687 million. In addition, housing association projects may be funded by local authorites and expenditure from this source in 1983–84 is estimated at £140 million. No estimate is available for 1984–85.
Revenue defict grant and hostel deficit grant are paid to registered housing associations which incur deficits on their housing or hostel management activities. They will amount to £25 million and £2.7 million, respectively, in 1983–84 and to £20 million and £3.1 million in 1984–85.
Grant is paid to housing associations under section 93 of the Finance Act 1965 in relief of corporation tax, capital gains tax and income tax on investment income. The provision for 1983–84 is £4 million and, for 1984–85, £5 million.
The Housing Finance Act 1972 gave powers for subsidising housing associations, and although these were 263W superseded by the current arrangements under the Housing Act 1974, subsidies are still being paid, on a reducing scale of £1.8 million in 1983–84 and £1.5 million in 1984–85.
The Housing Corporation may make grants to registered housing associations, under section 121(2) of the Housing Act 1980, out of money provided by the Government for that purpose in its grant-in-aid towards the expenses incurred by associations in giving advice on the formation or running of other housing associations and for the provision of services for them, and to other voluntary organisations towards their expenses in carring out like objects. In 1983–84 the total grants given in England, Scotland and Wales are expected to be £300,600; the provision for 1984–85 has not yet been decided.