Housing (Financial Provisions) (Scotland) Act 1972
Housing (FinancialProvisions) (Scotland)Act 1972
1972 CHAPTER 46
An Act to introduce a new system of housing subsidies for housing authorities; to provide for rent rebate and rent allowance schemes administered by housing authorities; to make provision as to the housing accounts of local authorities; to amend the law about rents of houses and in particular those subject to the Rent (Scotland) Act 1971 or provided by housing authorities; and to make other provision as to housing finance.
[27th July 1972]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Part I
Housing Subsidies
Introduction of new housing subsidies
1 Introduction of new housing subsidies.
(1) The subsidies set out in subsection (2) below shall be payable to local authorities in the circumstances, and subject to the conditions, set out in this Part of this Act.
(2) The said subsidies are—
Subsidies to be credited to the housing revenue account.
1. The residual subsidy.
2. The housing expenditure subsidy.
3. The high cost subsidy.
Subsidies to be credited to other accounts.
4. The rent rebate subsidy.
5. The rent allowance subsidy.
6. The slum clearance subsidy.
(3) The subsidies set out in this subsection shall be payable to development corporations and the Scottish Special Housing Association in the circumstances, and subject to the conditions, set out in this Part of this Act.
The said subsidies are—
1. The residual subsidy.
2. The housing expenditure subsidy.
3. The high cost subsidy.
4. The rent rebate subsidy.
(4) None of the subsidies set out in subsections (2) and (3) above shall be payable, whether to a local authority, a development corporation or the Scottish Special Housing Association, for the year 1971-72 or for any earlier year, except that, in the circumstances, and subject to the conditions, set out in this Part of this Act, the slum clearance subsidy shall be payable to a local authority in respect of expenditure incurred in the year 1971-72.
(5) The subsidies so receivable by housing authorities shall be paid by the Secretary of State out of money provided by Parliament.
Housing subsidies payable to local authorities
2 The residual subsidy.
(1) This section has effect as to the circumstances in which residual subsidy is payable to a local authority.
(2) For the purpose of determining the amount of residual subsidy payable to a local authority for the year 1972-73 and subsequent years, a calculation shall be made of the residual entitlement of the local authority as defined in subsection (3) below.
(3) Subject to subsections (4) and (5) below, the residual entitlement of a local authority shall consist of—
(a ) the amount of exchequer contributions to which they are entitled in respect of property to which the housing revenue account relates for the year 1971-72 under the enactments described in Part I of Schedule 1 to this Act, as finally determined by the Secretary of State under paragraph 5 of Schedule 8 to this Act, and
(b ) the further amount of such exchequer contributions to which they would be entitled for the year 1971-72 if houses, in respect of which proposals for their provivision were submitted to the Secretary of State in a form acceptable to him before 1st December 1971 for his approval but which were not completed in that year, had been completed in that year; and accordingly the provisions of Part I of the Act of 1968 relating to the calculation of exchequer contributions payable thereunder shall apply for the purpose of calculating the amount referred to in this paragraph as if such houses had been so completed, and
(c ) the amount of any contribution which they are entitled to receive for the year 1971-72 from another local authority under section 9(4)(b ) of the Housing and Town Development (Scotland) Act 1957 in pursuance of an overspill agreement.
(4) The residual entitlement shall not include any amount which was paid to the local authority under any enactment and on receipt of which they were required to make a payment of the same or a greater amount to any other person.
(5) The residual entitlement shall not include any amount referred to in subsection (3)(b ) above in so far as it exceeds any amount carried to the credit of the housing revenue account under paragraph 1(4) of Schedule 7 to the Act of 1968 for the year 1971-72.
(6) The residual entitlement shall be expressed as a sum per house for the year 1971-72.
(7) Subject to subsections (8) and (10) below, the amount of residual subsidy payable to a local authority for the year 1972-73 shall be—
(a ) an amount per house which is 9 less than the residual entitlement as expressed in subsection (6) above, plus
(b ) where the residual entitlement is limited by subsection (5) above, an amount equal to the amount which is not included in the residual entitlement by virtue of that subsection.
(8) The amount referred to in subsection (7)(b ) above shall be payable only if the local authority comply with the conditions set out in paragraph 1 of Schedule 10 to this Act.
(9) The amount of residual subsidy payable to a local authority for the year 1973-74 shall be an amount per house which is 10 less than the amount per house payable to them for the year 1972-73 under subsection (7)(a ) above; and in each subsequent year the amount per house of residual subsidy payable to a local authority shall be 10 less than the amount per house payable for the immediately preceding year, and so on until the amount becomes zero.
(10) Where any houses of a local authority referred to in subsection (3)(b ) above have not been completed by the end of the year 1974-75, then any residual subsidy which has been paid to the local authority on the basis that those houses had been completed shall, if the Secretary of State so requires, be repaid to him on such terms as he may determine.
(11) Any question as to the residual entitlement and as to the number of houses to which the housing revenue account relates shall be determined by the Secretary of State.
3 The housing expenditure subsidy and associated rate fund contribution.
(1) This section has effect as to the circumstances in which—
(a ) housing expenditure subsidy is payable to a local authority, and
(b ) a contribution out of the general rate fund associated with the housing expenditure subsidy is to be made by the local authority.
(2) Subject to the provisions of this section, a local authority shall be entitled to housing expenditure subsidy if for the year 1972-73 or any subsequent year there is an increase in the local authority's expenditure per house which exceeds 6 or such other sum as the Secretary of State may by order from time to time determine.
(3) In this section ‘qualifying amount’ means, in relation to the year 1972-73 and subsequent years, the excess mentioned in subsection (2) above multiplied by the number of houses to which the housing revenue account relates for that year.
(4) If there is a qualifying amount for any year (in this section called, in relation to the qualifying amount, ‘the base year’) then for the base year and for each subsequent year—
(a ) housing expenditure subsidy shall be payable to the local authority of an amount equal to the percentage of the qualifying amount specified in relation to the base year in column 2 of the Table below, and
(b ) the local authority shall make an associated contribution out of the general rate fund of an amount equal to the percentage of the qualifying amount specified in relation to that base year in column 3 of the said Table,
and accordingly, housing expenditure subsidy, and the associated contribution out of the general rate fund for any year (later than 1972-73) may comprise elements by reference to qualifying amounts for two or more different base years.
Table
Base year for which the local authority has a qualifying amount |
Amount of housing expenditure subsidy by reference to base year to be the following percentage of the qualifying amount |
Amount of associated contribution out of the general rate fund by reference to base year to be the following percentage of the qualifying amount |
| 1 | 2 | 3 |
1972-73 |
90 per cent | 10 per cent |
1973-74 |
85 per cent | 15 per cent |
1974-75 |
80 per cent | 20 per cent |
1975-76 and subsequent years |
75 per cent | 25 per cent |
(5) Housing expenditure subsidy for which the base year is any of the years 1972-73...
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