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.
'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.
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