Housing Act 1985

424 The housing costs differential.

(1) A local housing authority’s housing costs differential for a year of account is the amount by which their reckonable expenditure for that year exceeds their reckonable expenditure for the preceding year (and accordingly is nil or, as the case may be, a negative amount if the reckonable expenditure for the year is the same as or less than that for the preceding year).

(2) A local housing authority’s reckonable expenditure for a year is the aggregate of—

(a) so much of the expenditure incurred by the authority in that year and falling to be debited to the authority’s Housing Revenue Account as the Secretary of State may determine, and

(b) so much of any other expenditure incurred by the authority in that year, or treated as so incurred in accordance with a determination made by the Secretary of State, as the Secretary of State may determine to be taken into account for the purposes of housing subsidy.

(3) A determination may be made for all local housing authorities or different determinations may be made—

(a) for authorities of different descriptions, or

(b) for authorities in England and authorities in Wales, or in different parts of England or Wales; or

(c) for individual authorities;

and a determination may be varied or revoked in relation to all or any of the authorities for which it was made.

(4) Before making a determination for all local housing authorities the Secretary of State shall consult organisations appearing to him to be representative of local housing authorities.