Communities Committee, 17 Mar 2004

Meeting date: Wednesday, March 17, 2004

Official Report 99KB pdf

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Subordinate Legislation

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Draft Housing Support Grant (Scotland) Order 2004

I welcome Mary Mulligan, the Deputy Minister for Communities, who has joined us for agenda item 2. Members will be aware that the draft Housing Support Grant (Scotland) Order 2004 is to be considered under the affirmative procedure, which means that under rule 10.6.2 of the standing orders the deputy minister is required to propose by motion that the draft order be approved. Members have received copies of the draft order and the accompanying documentation.

I ask the minister to speak briefly on the draft order.

The draft Housing Support Grant (Scotland) Order 2004 sets out the amount of housing support grant that will be payable to local authorities in 2004-05. As has been the case for several years, only the two councils with the highest debt per house—Shetland Islands Council and Western Isles Council—will qualify for grant for their housing costs. The total grant that is payable to those councils is about £5.3 million. Housing support grant remains a substantial proportion of total housing revenue account income for those councils. Without the subsidy, rents in those areas would have to increase substantially.

One change from last year—of which I am sure members are aware—is the change to the hostel grant, which will no longer be paid through the HSG statutory provisions. In future, that grant will be paid under the Housing (Scotland) Act 2001. There will be no change in the methodology of calculating hostel grant entitlements. For the record, in 2004-05, 22 councils will be in receipt of that grant, which will total £4.8 million. That compares with the £4 million that is payable in the current financial year.

As there are no questions, I ask the minister to move the motion.

I move that the Social Justice Committee, following consideration of the draft Housing Support Grant (Scotland) Order 2004, recommends that the said order be approved.

Of course, this is the Communities Committee.

Sorry. I obviously have last year's speech.

I thought that you were checking whether we are paying attention. I hope that you were not trying to sneak something through.

Motion moved,

That the Communities Committee recommends that the draft Housing Support Grant (Scotland) Order 2004 be approved.—[Mrs Mary Mulligan.]

Motion agreed to.

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Housing Revenue Account General Fund Contribution Limits (Scotland) Order 2004 (SSI 2004/60)

Members have been provided with a copy of the order and the accompanying documents. Members have no comments, so is the committee content with the order?

Members indicated agreement.

The committee will therefore make no recommendation on the order in its report to Parliament.

Do members agree to report to Parliament our decisions on the two orders that we have considered?

Members indicated agreement.