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203
B.—Assisted Scheme—Housing, etc., Act, 1919.
This section comprises the whole of the Council's operations under the first
(Addison) Assisted Scheme, and, as provided in the Act, includes the losses incurred
by the metropolitan borough councils, together with the deficiency in connection
with the issue by the Council of Local Bonds for Housing for the purpose of financing
the schemes of the borough councils under the Act of 1919. The Council's Housing
Accounts thus embody the financial results of all the schemes subject to the 1919
Act for the County of London as a whole. The annual deficiency (as approved by
the Minister of Health) under this Act in excess of the produce of a penny rate is
met out of moneys voted by Parliament. The results for the year 1925-26, compared
with those for the previous year, are as follows:—
1925-26.
1924-25.
£ s. d. £ s. d
1. Clearance schemes Surplus 1,784 9 4 Deficiency 8,016 13 5
2. Dwellings Deficiency 426,915 3 2 Deficiency 402,030 8 5
3. Schemes of metropolitan borough
councils Deficiency 248,669 7 11 Deficiency 240,011 15 11
4. Local bonds (for housing) Deficiency 29,132 5 8 Deficiency 32,395 3 8
Total deficiency 702,932 7 5 682,454 1 5
The "surplus" on clearance schemes is due to adjustment of the accounts of
past years, following agreement with the Ministry as to the areas which should be
deemed to belong to the 1919 and 1923 schemes respectively.
The total deficiency is provided for as follows:—
1925-26.
1924-25.
£
s.
d.
£
s.
d.
Chargeable to Special County Account (produce
of penny rate £180,007 3s. 3d., less adjustments
(see below)
169,794
8
3
177,773
18
10
Exchequer subsidy
533,137
19
2
504,680
2
7
702,932
7
5
682,454
1
5
The accounts of 1925-26 include an adjustment necessary to remove from the
subsidy account the amounts of rates collected from tenants and paid in bulk by
the Council since the commencement of the assisted scheme, the Ministry having
decided that these transactions, being at the discretion of the Council, should not
be brought into account in the loss as computed for subsidy purposes. The
arrangement is to the Council's financial advantage.
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 additonal charge on the
county rate.
As regards the deficiency under the head of dwellings, £35,716 11s. 11d. is
attributable to "estates in course of development," the debt and other charges in
respect of which, less receipts in aid, are shown separately in the detailed statements
appended to 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.—A sum of £248,669 7s. 11d.
is provisionally included to cover the borough councils' losses for the year 1925-26
as compared with £240,011 15s. 11d. for the year 1924-25. The amount is subject to
revision, and any variation will be reflected in the amount of the Exchequer subsidy.