Local Government and Housing Act 1989

Housing subsidies E+W

79 Housing Revenue Account subsidy. E+W

(1) Housing Revenue Account subsidy shall be payable for each year to local housing authorities.

(2) [F1 Housing Revenue Account subsidy shall be paid by the Secretary of State at such times, in such manner and subject to such conditions as to records,certificates, audit or otherwise as he may, with the agreement of theTreasury, determine.]

[F1 Housing Revenue Account subsidy shall be paid by the appropriate person—

(a) in such instalments, at such times and in such manner, and

(b) subject to such conditions as to claims, records, certificates, supply of Housing Revenue Account business plans, audit or otherwise,

as the appropriate person may determine.]

(3) Sections 421 to 427A of the M1 Housing Act 1985 (which are superseded, in their application to local housing authorities, by this section and sections 80 and 86 below) shall cease to apply in relation to such authorities.

Textual Amendments

F1 S. 79(2) substituted (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(1), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

Marginal Citations

M1 1985 c. 68.

80 Calculation of Housing Revenue Account subsidy. E+W

(1) [F2 The amount of Housing Revenue Account subsidy (if any) payable to a local housing authority for a year shall be calculated in such manner as the appropriate person may from time to time determine.

(1A) A determination under subsection (1) above may (in particular)—

(a) provide for all or part of the amount to be calculated in accordance with a formula or formulae;

(b) provide for the amount, or part of the amount, to be calculated by reference to—

(i) whether any Housing Revenue Account business plan that the authority are required to prepare by any time has been supplied to the appropriate person or has been supplied to the appropriate person by that time;

(ii) the appropriate person’s assessment of any Housing Revenue Account business plan prepared by the authority and supplied to the appropriate person;

(iii) whether conditions are met that relate to, or to the authority’s conduct of, the authority’s finances or any aspect of those finances;

(iv) an assessment of the state of, or of the authority’s conduct of, the authority’s finances or any aspect of those finances;

(v) whether conditions are met that relate to housing provided by the authority, to housing functions of the authority or to the authority’s performance in exercising such functions;

(vi) an assessment of, or of the state of, housing provided by the authority;

(vii) an assessment of the authority’s performance in exercising functions in relation to housing provided by the authority or in otherwise exercising housing functions;

(viii) whether, as respects housing provided by the authority, management functions exercisable in relation to that housing have been entrusted to a company;

(ix) whether, where such functions have been entrusted to a company, conditions are met that relate to the performance of the company in exercising the functions;

(x) an assessment, where such functions have been entrusted to a company, of the performance of the company in exercising those functions;

(xi) assumptions as to any matter;

(c) have the effect that the amount, or part of the amount, is nil or a negative amount;

(d) make different provision for different parts of the amount.]

F3 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) In determining a formula for the purposes of this section for any year, [F4 the appropriate person may (in particular)] include variables framed (in whatever way he considers appropriate) by reference to—

(a) any amounts which fall to be or were credited or debited to the authority’s Housing Revenue Account for that year or any previous year;

(b) any amounts which, on such assumptions as the [F5 appropriate person] may determine (whether or not borne out or likely to be borne out by events), would fall to be or would have been so credited or debited; and

(c) such other matters relating to the authority, or to (or to tenants of) houses and other property which are or have been within the account, as he thinks fit;

F6 ...

(4) Without prejudice to the generality of subsection (3) above, a formula may require it to be assumed that the amount for any year of the rental income or housing expenditure of each authority (or each authority in England or in Wales) is to be determined—

(a) by taking the amount which the [F7 appropriate person] considers (having regard, amongst other things, to past and expected movements in incomes, costs and prices) should be or should have been the aggregate amount for that year of the rental incomes or, as the case may be, the housing expenditure of all of the authorities (or all of the authorities in England or Wales) taken together; and

(b) by apportioning that amount between them in such manner as the [F7 appropriate person] considers appropriate (which may involve, if he thinks fit, inferring the aggregate values of the houses and other property within their respective Housing Revenue Accounts from the average values of any of the houses and other property which they have disposed of);

and in this subsection “rental income” means income falling within item 1 of Part I of Schedule 4 to this Act and “housing expenditure” means expenditure falling within item 1 of Part II of that Schedule or falling to be debited to the authorities’ Housing Repairs Accounts.

[F8 (5) Nothing in subsections (1A) to (4) above is to be taken as limiting the appropriate person’s discretion under subsection (1) above.

(6) The appropriate person may make a determination under subsection (1) above, or a calculation under such a determination, on the basis of information received by him on or before such date as he thinks fit.]

Textual Amendments

F2 S. 80(1)(1A) substituted for s. 80(1) (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(2), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F3 S. 80(2) repealed (27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004, and 1.4.2004 for E.) by Local Government Act 2003 (c. 26), ss. 90(2), 128(6), Sch. 8 Pt. 1; S.I. 2003/2938, art. 7(a)(e)(iii) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F4 Words in s. 80(3) substituted (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(3)(a), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F5 Words in s. 80(3)(b) substituted (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(4), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F6 Words in s. 80(3) repealed (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(3)(b), 128(6), Sch. 8 Pt. 1; S.I. 2003/2938, art. 3(a)(i)(iii) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F7 Words in s. 80(4) substituted (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(4), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

F8 S. 80(5)(6) inserted (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 89(5), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

Modifications etc. (not altering text)

C1 S. 80: power to restrict conferred (1.12.1998) by 1998 c. 38, s. 22(5), Sch. 3 Pt. II para. 8 (with ss. 139(2), 143(2)); S.I. 1998/2789, art. 2

[F9 80B Agreements to exclude certain authorities or property E+W

(1) Subsection (2) applies if an agreement is in force between the appropriate person and a local housing authority for sections 79 to 80A not to apply in relation to—

(a) the authority; or

(b) specified property, or specified descriptions of property, of the authority.

(2) Sections 79 to 80A do not apply in relation to the authority or (as the case may be) property for each year provided for in the agreement.

(3) Such an agreement may, in particular, contain terms and conditions about—

(a) the period of years for which sections 79 to 80A are not to apply (whether a fixed or indefinite period);

(b) payments to the authority by the appropriate person or by the authority to the appropriate person;

(c) the levels of rent for specified property or specified descriptions of property (in the case of an agreement of the kind mentioned in subsection (1)(b));

(d) the provision of information;

(e) the variation or termination of the agreement (whether on the occurrence of particular events, at the discretion of the appropriate person or otherwise).

(4) The appropriate person may give directions about supplementary, incidental, consequential or transitional matters relating to the variation or termination of an agreement of the kind mentioned in subsection (1).

(5) Such directions may not override any provision made on the subject by the agreement unless the directions are given with the consent of the local housing authority concerned.

(6) The provision made by the directions or the agreement may, in particular, include transitional provision about the terms and conditions on which the authority or (as the case may be) property is to become subject to sections 79 to 80A after the termination of the agreement.

(7) This section does not restrict the circumstances in which Housing Revenue Account subsidy is otherwise not payable to a local housing authority, or in respect of particular property, by virtue of this Part.

(8) In this section—

• “property” means land, houses, dwellings, buildings or property of a kind falling within paragraphs (a) to (f) of section 74(1) (property within the Housing Revenue Account); and includes future property;

• “specified”, in relation to an agreement, means specified in the agreement.]

Textual Amendments

F9 S. 80B inserted (22.9.2008) by Housing and Regeneration Act 2008 (c. 17), ss. 313(1), 325(2)(a)

[F10 80ZA Negative amounts of subsidy payable to appropriate person E+W

(1) If calculation in accordance with a determination under section 80(1) above of the amount of Housing Revenue Account subsidy payable to a local housing authority for a year produces a negative amount—

(a) the authority shall for that year debit the equivalent positive amount to their Housing Revenue Account, and

(b) pay that equivalent amount to the appropriate person.

(2) Amounts payable to the appropriate person under subsection (1)(b) above shall be paid to him in such instalments, at such times and in such manner as he may determine.

(3) A payment in respect of an amount payable under subsection (1)(b) above shall be accompanied by such information as the appropriate person may require.

(4) The appropriate person may charge a local housing authority interest, at such rates and for such periods as he may determine, on any sum payable to him under subsection (1)(b) above that is not paid by such time as may be determined under subsection (2) above for its payment.

(5) The appropriate person may charge a local housing authority an amount equal to any additional costs incurred by him as a result of any sum payable to him under subsection (1)(b) above not being paid by such time as may be determined under subsection (2) above for its payment.]

Textual Amendments

F10 S. 80ZA inserted (18.11.2003 for E. and 27.11.2003 for W. for the purpose of and in relation to financial years beginning on or after 1.4.2004) by Local Government Act 2003 (c. 26), ss. 90(1), 128(6); S.I. 2003/2938, art. 3(a) (with art. 8, Sch.); S.I. 2003/3034, art. 2, Sch. 1 Pt. I

[F11 80A Final decision on amount of Housing Revenue Account subsidy. E+W

(1) The Secretary of State shall, as soon as he thinks fit after the end of the year, make a final decision as to the amount (if any) of Housing Revenue Account subsidy payable to a local housing authority for that year and notify the authority in writing of his decision.

[F12 (1A) Notification in writing of a decision under this section is to be taken as given to a local housing authority where notice of the decision is sent using electronic communications to such address as may for the time being be notified by that authority to the Secretary of State for that purpose.

F12 (1B) Notification in writing of a decision under this section is also to be treated as given to a local housing authority where—

(a) the Secretary of State and that authority have agreed that notifications of decisions under this section required to be given in writing to that authority may instead be accessed by that authority on a web site;

(b) the decision is a decision to which that agreement applies;

(c) the Secretary of State has published the decision on a web site;

(d) that authority is notified, in a manner for the time being agreed for the purpose between it and the Secretary of State, of—

(i) the publication of the decision on a web site;

(ii) the address of that web site; and

(iii) the place on that web site where the notice may be accessed, and how it may be accessed.

F12 (1C) A local housing authority which is no longer willing to accept electronic communications for the notification of decisions under this section, may withdraw a notification of an address given to the Secretary of State for the purposes of subsection (1A) above, and such a withdrawal shall take effect on a date specified by the authority being a date no less than one month after the date on which the authority informs the Secretary of State that it wants to withdraw the notification of the address given.

F12 (1D) A local housing authority which has entered into an agreement with the Secretary of State under paragraph (a) of subsection (1B) above may revoke the agreement, and such a revocation shall take effect on a date specified by the authority being a date no less than one month after the date on which the authority informs the Secretary of State that it wants to revoke the agreement.]

(2) Once notified to the authority the decision is conclusive as to the amount (if any) payable by way of subsidy and shall not be questioned in any legal proceedings.

(3) Where the amount of Housing Revenue Account subsidy paid to an authority is less than the amount finally decided, the authority is entitled to be paid the balance.

(4) Where Housing Revenue Account subsidy has been paid to an authority in excess of the amount finally decided, the Secretary of State may recover the excess, with interest from such time and at such rates as he thinks fit.

[F13 (4A) Without prejudice to other methods of recovery, a sum recoverable under subsection (4) above may—

(a) be recovered by withholding or reducing subsidy, and

(b) if the sum is referable to housing benefit in respect of houses or other property within the authority’s Housing Revenue Account, be recovered by withholding or reducing rent rebate subsidy under Part 8 of the Social Security Administration Act 1992.]

(5) Nothing in this section affects any power of the Secretary of State to vary a determination as to the amount of subsidy before the final decision is made.]

Textual Amendments

F11 S. 80A inserted (1.10.1996 with effect as mentioned in Sch. 18 para. 5(2) of the amending Act) by 1996 c. 52, s. 222, Sch. 18 para. 5(1); S.I. 1996/2402, art. 3

F12 S. 80A(1A)-(1D) inserted (E.) (10.12.2000) by S.I. 2000/3056, art. 2 and the said insertion extended to Wales (1.4.2001) by S.I. 2001/605, art. 2(2)

F13 S. 80A(4A) substituted for words (18.11.2003) by Local Government Act 2003 (c. 26), s. 128(3)(e), Sch. 7 para. 31; S.I. 2003/2938, art. 2(a) (with art. 8, Sch.)

Modifications etc. (not altering text)

C2 S. 80A extended (W.) (1.4.2001) by S.I. 2001/605, art. 2(1), Sch.

F14 81 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E+W

Textual Amendments

F14 S. 81 repealed (1.7.1992) by Social Security (Consequential Provisions) Act 1992 (c. 6), s. 3, Sch.1

82 Residual debt subsidy for year 1989–90. E+W

(1) Where, in the case of any local housing authorities to whom no housing subsidy is payable for the year beginning 1st April 1989, houses or other property within their respective Housing Revenue Accounts—

(a) are disposed of in that year, or

(b) are in that year the subject of such other transactions as the Secretary of State may determine,

residual debt subsidy shall be payable for that year to those authorities in respect of costs relating to the houses or other property.

(2) Residual debt subsidy shall be paid by the Secretary of State at such times, in such manner and subject to such conditions as to records, certificates, audit or otherwise as he may, with the agreement of the Treasury, determine.

(3) Payment of residual debt subsidy shall be subject to the making of a claim for it in such form, and containing such particulars, as the Secretary of State may from time to time determine.

(4) Residual debt subsidy paid to a local housing authority shall be credited to the authority’s Housing Revenue Account and, accordingly, for the year beginning 1st April 1989 the reference to housing subsidy in item 3 in Part I of Schedule 14 to the M2 Housing Act 1985 shall be taken to include a reference to residual debt subsidy.

Marginal Citations

M2 1985 c. 68.

83 Calculation of residual debt subsidy. E+W

(1) The amount of the residual debt subsidy (if any) payable to a local housing authority shall be calculated—

(a) in accordance with such formulae as the Secretary of State may from time to time determine; and

(b) by reference to such houses or other property as the Secretary of State may for the time being determine.

(2) A determination of the Secretary of State under this section may relateto disposals or other transactions which occur before the making of the determination.

84 Adjustment of housing subsidy for year 1989-90. E+W

(1) In any case where, apart from this subsection and subsection (2) below, the amount of housing subsidy payable to a local housing authority for the year beginning 1st April 1989 would be reduced or extinguished as a result of the transfer from the authority to a housing action trust of housing, land orother property as mentioned in section 74 of the M3 Housing Act 1988, the Secretary of State, in the exercise of his power under section 423(2) of the Housing Act 1985, may adjust the authority’s base amount forthat year to take account of the effect of that transfer.

(2) If, in accordance with subsection (1) above, the Secretary of State can make an adjustment of a local housing authority’s base amount for the year beginning 1st April 1989 to take account of a transfer of housing, land orother property to a housing action trust, he may, instead of or as well as making such an adjustment, take account of the effect of the transfer in the making or varying of any determination for that year under section 424 (housing costs differential) or in the making of any determination undersection 425 (local contribution differential) of the Housing Act 1985.

(3) Subsections (1) and (2) above shall be deemed to have been in force so as to be applicable for the year beginning 1st April 1989.

Marginal Citations

M3 1988 c. 50.