Housing (Scotland) Act 1987

254 Exchequer contributions towards improvement or repairs grants or grants for fire escapes

(1) The Secretary of State may make Exchequer contributions towards the expense incurred by a local authority in making an improvement grant or a repairs grant or a grant under section 250 (grants for fire escapes).

(2) Subject to any order made by the Secretary of State under subsection (5), an Exchequer contribution under subsection (1) shall be a sum equal to 75 per cent. (in the case of an improvement or repairs grant), or 90 per cent. (in the case of a grant under section 250) of the annual loan charges referable to the amount of the grant, payable for each of the 20 financial years beginning with the year in which were completed the works in respect of which the grant was made.

(3) For the purposes of this section, the annual loan charges referable to the amount of a grant shall (whatever may be the manner in which the local authority have provided or intend to provide the money requisite for making the grant) be the annual sum which, in the opinion of the Secretary of State, would fall to be provided by the authority for the payment of interest on, and the repayment of, an amount of borrowed money equal to the amount of the grant, being money the period for the repayment of which is 20 years.

(4) A local authority shall pay to the Secretary of State such percentage as may have been paid to them by virtue of subsection (2) of any sum—

(a) recovered by them by virtue of section 246 in consequence of a breach of any of the conditions required to be observed with respect to the house, or

(b) paid to them under section 247 in respect of the house.

(5) The Secretary of State may by order made with the consent of the Treasury vary, either generally or in relation to classes of houses, with respect to grants made in pursuance of applications approved by local authorities after such date as may be specified in the order, the percentages fixed by virtue of subsection (2):

Provided that the said percentages shall not be reduced to less than 65 per cent.

(6) An order under subsection (5)—

(a) shall not be made unless a draft thereof has been approved by a resolution of the House of Commons; and

(b) shall not specify under that subsection a date earlier than the date of the laying of the draft;

and before laying such a draft the Secretary of State shall consult with such associations of local authorities as appear to him to be concerned and with any local authority with whom consultation appears to him to be desirable.