The Treasury is expected to reduce both the capital and revenue sides of the£8 billion housing budget, reports The...
The Treasury is expected to reduce both the capital and revenue sides of the £8 billion housing budget, reports The Financial Times (p8). The cabinet's public spending committee - EDX - resumes its meetings this week and the current discussions on housing expenditure are expected to target spending through local authorities and the Housing Corporation, says the paper.
Council leaders will ask Environment Secretary John Gummer to extend beyond the end of the year the period in which authorities can spend proceeds from selling property or land.
The latest estimate from the Department of the Environment is that councils will raise about £500 million less than the £1.75 billion expected.
A reduction of up to £300 million is also expected for the Housing Corporation. And EDX is also thought to be considering further reducing the proportion of public money used to fund housing association projects, although this could not take effect until years two and three of the government's spending review period, says the FT. The DoE's urban programmes are expected to be hit slightly less hard in the spending round.