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The liability of the Ministry under the Act of 1919 is limited to the " loss " as
defined in the regulations and as approved by the Minister. Should any part of
the deficiency not be approved, the difference becomes an additional charge on the
county rate. The adjustment shown above arises chiefly from the fact that the
debt charges brought to account in 1920-21, based on estimates, were revised when
precise information was available as to the actual amount of the 1920 issue of Stock
and Bonds to be appropriated for this account. The resulting credit, although
appearing in the accounts of a later year, belonged to 1920-21, in which year the
loss, being less than the amount of a penny rate, fell entirely on the Council. The
Ministry have agreed that, in the circumstances, the Council alone is entitled to the
benefit of the credit, and the adjustment is made accordingly.
As regards the largest head of deficiency (working-class dwellings), it will be
seen from the detailed statement that a considerable part of the deficiency (£88,328
17s. 7d.) appears under the head of "estates in course of development," the debt
and other charges in respect of which, less receipts in aid, are shown separately in
the accounts. This course follows the Council's past practice and is adopted in
order to permit a clear view of the results of managing completed dwellings. As
the work on each estate proceeds, the proper proportion of capital expenditure
and debt charges is allocated to the account of the dwellings available for letting,
and, in the end, the total capital expenditure on land and development is entirely
absorbed in the cost of the dwellings.
Housing Schemes of Metropolitan Borough Councils.—Under the Act of 1919,
the Council has to refund to the borough councils the losses arising in connection
with schemes carried out by them under the Act. The Council's Housing Accounts
thus show the financial results of the assisted scheme for the County of London
as a whole. A sum of £254,546 1s. 3d. is provisionally included to cover the borough
councils' losses for the year 1923-24 as compared with £240,914 1s. l0d. for the year
1922-23. The amount is subject to revision, but the county rate wall not be affected
by any variation because the Council's liability on the assisted scheme as a whole
is limited to the amount of a penny rate.
Local Bonds (for housing).—The issue of these Bonds ceased on 30th July,
1921, the total amount raised to that date being £3,955,605. Deducting £106,373
6s. 2d. for expenses of issue, the net amount raised was £3,849,231 13s. lOd. £3,847,868
of this sum has been advanced on loan to the metropolitan borough councils for
housing purposes. No part of the proceeds has been used for the Council's own
capital purposes.
The Ministry of Health have agreed to the expenses of issue being spread over
a period of 5 years, and charged to the assisted scheme. Provision has been made
accordingly. The rate of interest charged on the loans to the borough councils is