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£175M INVESTMENT PACKAGE FOR SCOTTISH COUNCIL HOUSING

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Scottish housing minister Calum MacDonald today announced£174.6m to Scottish local authorities in net capital allo...
Scottish housing minister Calum MacDonald today announced£174.6m to Scottish local authorities in net capital allocations to spend on council housing investment in 1998-99, and£12.7m in housing support grant.

After a meeting with COSLA representatives in Edinburgh today, Mr MacDonald said:

'The total net allocation at£174.6m gives each authority an increase on the£171.9m issued to councils last year, despite a difficult expenditure round.

'I can also announce that the government will provide some£12.7m in housing support grant to local authorities for 1998-99. Of this sum, around£3.3m is being issued to assist with the running costs of hostels for the homeless.

'In addition, councils will also be able to recycle a proportion of their capital receipts they raise from sales of land and houses. On their own estimates, they expect to be able to augment their allocations by some£56m in useable receipts from these sources.

'These resources are in addition to the substantial extra resources

which the government are making available for the 'New Housing Partnerships' initiative and for improved home energy efficiency linked to the 'New Deal'.

'In particular, we are making an extra£10m available this year

and some£35m next year for 'New Housing Partnerships'. We will be seeking partnership projects under this initiative which deliver

quality housing for tenants in the social rented sector; which attract private sector funders and which can be replicated more widely. I am

encouraged by the willingness of councils to consider and explore the partnership approach to housing and look forward to significant progress in the months ahead.'

The minister also announced that due to an increase in the local authority pool rate of interest, housing support grant for 1997-98

would be increased from£15.2m to£15.6m. Housing support grant is directed to those authorities which are unable to meet all their council housing costs from rental income.

NOTES

1. The distribution of the Housing Revenue Account (HRA) capital allocations for 1998-99 is set out in the following table.

2. For the distribution of Housing Support Grant for 1998-99, three authorities; Highland, Western Isles and Shetland qualify for a total of£9.3m towards their housing costs and a further 20 councils share some£3.4m towards their hostels costs.

3. Distribution of Housing Revenue Account (HRA) allocations for 1998-99 by local authority are (figures in millions):

Aberdeen City Council 5.293

Aberdeenshire Council 4.495

Angus Council 1,536

Argyll & Bute Council 1.607

Clackmannanshire Council 1.597

Dumfries & Galloway Council 4.251

Dundee City Council 8.436

East Ayrshire Council 3.489

East Dunbartonshire Council 2.388

East Lothian Council 2.510

East Renfrewshire Council 0.964

City of Edinburgh Council 14.916

Falkirk Council 5.369

Fife Council 7.007

City of Glasgow Council 43.750

Highland Council 7.230

Inverclyde Council 3.965

Midlothian Council 2.122

Moray Council 1.848

North Ayrshire Council 2.953

North Lanarkshire Council 12.330

Orkney Islands Council 0.224

Perth & Kinross Council 2.108

Renfrewshire Council 8.565

Scottish Borders Council 2.399

Shetland Council 1.981

South Ayrshire Council 2.906

South Lanarkshire Council 5.858

Stirling Council 3.048

West Dunbartonshire Council 5.657

West Lothian Council 2.097

Western Isles Council 1.701

Scotland total 174.600

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