dU JrHIS D O C U M E N T IS THE P R O P E R T Y OF H E R B R I T A N N I C M A J E S T Y ' S G. ( 6 5 ) 1 5 2 C O P Y NO. 12th November, GOVERNMENT) 66 1965 CABINET THE S C O T T I S H HOUSING P R O G R A M M E : D R A F T WHITE P A P E R M e m o r a n d u m b y t h e S e c r e t a r y of S t a t e f o r S c o t l a n d B e c a u s e o u r S c o t t i s h h o u s i n g n e e d s and o b j e c t i v e s d i f f e r m a t e r i a l l y f r o m t h o s e in England and W a l e s , I a m p r o p o s i n g to p r e s e n t a separate White P a p e r . A draft is attached for m y colleagues approval. 1 2. A s the new S c o t t i s h s u b s i d i e s will t a k e effect f r o m the date of p r e s e n t a t i o n of t h i s W h i t e P a p e r , b o t h P a p e r s m u s t b e p r e s e n t e d on t h e s a m e d a y . W . R. Scottish Office, S. W. 1. 12th November, 1965 CONFIDENTIAL n , THE SCOTTISH HOUSIIvG PROGRAMS 1965 t o 1970 THE AIM 1. The N a t i o n a l Plan^"^ announced t h e Government s i n t e n t i o n t o g i v e t o 1 housing a g r e a t e r p r i o r i t y t h a n i t has had f o r many y e a r s i t h e r a t e of "building w i l l "be i n c r e a s e d w i t h t h e i n i t i a l aim of a c h i e v i n g a programme of h a l f a m i l l i o n houses a y e a r i n t h e United Kingdom "by 1970. Scotland's share of t h i s t o t a l w i l l "be about 50,000 houses a y e a r , an i n c r e a s e of 40 p e r c e n t . o v e r t h e 19&4 l e v e l . The need 2. The number of new h o u s e s needed i n S c o t l a n d cannot y e t be e s t i m a t e d , (2)5 hut i t i s c l e a r t h a t by any s t a n d a r d a v a s t programme i s precisely ' " e s s e n t i a l i f p a s t d e f i c i e n c i e s a r e t o he overcome and p r e s e n t and f u t u r e needs a d e q u a t e l y met. 3. At p r e s e n t t h e r e a r e i n S c o t l a n d about i f m i l l i o n h o u s e s . Although t h e need f o r r e p l a c e m e n t of a house cannot he r e l a t e d t o i t s age - some v e r y o l d h o u s e s have been o r c o u l d he improved t o modern s t a n d a r d s - t h e mere f a c t t h a t h a l f a m i l l i o n a r e o v e r e i g h t y y e a r s old c l e a r l y i n d i c a t e s t h e need f o r a s u b s t a n t i a l programme of r e p l a c e m e n t . In t h e i r most r e c e n t slum c l e a r a n c e programmes, s u b m i t t e d i n r e s p o n s e t o a c i r c u l a r from t h e S c o t t i s h Development Department o f December 1964? "k- ie l o c a l a u t h o r i t i e s are proposing t o accelerate t h e r a t e of c l e a r a n c e and t o c l o s e o r demolish some 45*000 u n f i t houses d u r i n g t h e t h r e e y e a r s 1965 t o 1967. They e s t i m a t e t h a t about t h e same number a g a i n a r e i n such c o n d i t i o n t h a t t h e y s h o u l d he demolished as soon as r e s o u r c e s permit. This i s n o t , however, any r e a l measure of the t o t a l need f o r r e p l a c e m e n t of u n f i t and o b s o l e s c e n t h o u s e s . A v e r y high p r o p o r t i o n of the o l d e r h o u s e s a r e i n s t o n e tenements and c o n s i s t of o n l y one or two rooms; and most have no f i s e d h a t h , hot w a t e r t a p or s e p a r a t e w . c . or l a c k a t one of t h e s e e s s e n t i a l s . Although many of them a r e s o l i d l y least constructed and might w e l l s t a n d f o r many y e a r s , t h i s s o l i d i t y i s t h e v e r y f a c t o r which m i l i t a t e s a g a i n s t a t t e m p t s t o b r i n g them up t o modern s t a n d a r d s of s i z e and a m e n i t y , and i n most c a s e s n o t h i n g s h o r t of r e p l a c e m e n t i s 1. (l) Cmnd. 2764, C h a p t e r 17. (2) See Appendix A practicable. 4. Eaoh y e a r i t i s n e c e s s a r y t o d e m o l i s h some houses which would have had a u s e f u l f u r t h e r l i f e ; t h i s h a p p e n s , f o r example, as a consequence o f comprehensive r e d e v e l o p m e n t of slum a r e a s or of new r o a d schemes. There a l s o remain some 18,000 t e m p o r a r y houses "built a f t e r t h e Second Yiorld War which must be r e p l a c e d soon. 5. I n a d d i t i o n t h e r e i s t h e need a r i s i n g from the i n c r e a s e s i n c e t h e War i n t h e number of f a m i l i e s wanting a home of t h e i r own, an i n c r e a s e which largely reflects t h e t r e n d t o w a r d s e a r l i e r m a r r i a g e , which i s The demand would have been g r e a t e r i f continuing. t h e n e t r a t e o f m i g r a t i o n from S c o t l a n d now r u n n i n g a t 40,000 p e r s o n s a y e a r - had n o t been so l a r g e . economic p o l i c i e s f o r S c o t l a n d , still The G o v e r n m e n t s 1 a s t h e y w i l l be d e f i n e d i n a White P a p e r on t h e S c o t t i s h Economy 1965 t o 1970, t o be p u b l i s h e d s h o r t l y , w i l l have as t h e i r aim the c r e a t i o n of more employment o p p o r t u n i t i e s i n S c o t l a n d , r e s u l t i n g i n l o w e r unemployment and h i g h e r a c t i v i t y r a t e s and a s u b s t a n t i a l r e d u c t i o n i n t h e l o s s o f p o p u l a t i o n by e m i g r a t i o n . For a l l t h e s e p u r p o s e s much w i l l depend on a h i g h e r d e g r e e of m o b i l i t y of l a b o u r and t h i s , i n t u r n , w i l l c a l l f o r new h o u s i n g on a s u b s t a n t i a l s c a l e i n s u p p o r t of economic g r o w t h , in Central 6. particularly Scotland. B r o a d l y , t h e r e q u i r e m e n t f o r new houses o v e r t h e n e x t few y e a r s e s t i m a t e d as f o l l o w s is ­ e x i s t i n g now ( i ) up t o 500,000 t o r e p l a c e houses alrea.dy i d e n t i f i e d as slums o r r e p l a c e o l d houses n o t c a p a b l e of (ii) a a t l e a s t 30,000 t o meet p r e s e n t to improvement; shortages; . ^ s i n g ^annually (iii) ( i v ) ( v ) 3,000 a y e a r t o r e p l a c e o t h e r l o s s e s ; 17,000 a y e a r t o keep up w i t h t h e forms/tion o f new h o u s e h o l d s ; 5,000 a y e a r t o meet a d d i t i o n a l i n d u s t r i a l r e q u i r e m e n t s and reduce emigration. A programme of 50,000 houses a y e a r can be o n l y a f i r s t all ­ these requirements.­ 2. s t e p t o w a r d s meeting jjQ^f-S A , ?z .t 0 7. e .CQ . ii&k . r e Of t h e 550,000 houses b u i l t i n S c o t l a n d s i n c e t h e War o n l y 75,000 were f o r p r i v a t e owners, almost e x c l u s i v e l y f o r owner-occupation. The r e m a i n i n g 475,000 have been e r e c t e d by p u b l i c a u t h o r i t i e s - t h e l o c a l a u t h o r i t i e s , new town c o r p o r a t i o n s , the t h e S c o t t i s h S p e c i a l Housing A s s o c i a t i o n and Government departments - almost e x c l u s i v e l y f o r l e t t i n g . The p r o p o r t i o n of p r i v a t e h o u s i n g has i n c r e a s e d s t e a d i l y s i n c e t h e ',.ar, hut t h e number b u i l t f o r p r i v a t e s e c t o r i n any y e a r has n e v e r exceeded about o n e - f i f t h of t h e the total This i s i n marked c o n t r a s t t o many p a r t s of t h e U n i t e d Kingdom, i n which more houses have been b u i l t f o r o w n e r - o c c u p a t i o n than by t h e p u b l i c authorities. The G-overnement c o n s i d e r t h a t t h e r e i s a l a r g e p o t e n t i a l demand f o r occupation i n Scotland. owner­ I n p a r t i c u l a r t h e b u i l d i n g o f many a t t r a c t i v e houses f o r s a l e w i l l he e s s e n t i a l i f i n d u s t r y i s t o be i n d u c e d t o grow i n S c o t l a n d . . 8. There i s however an even g r e a t e r need f o r new houses t o l e t . shortages f a l l The p r e s e n t most h e a v i l y on t h o s e who a r e l e a s t a b l e t o pay an economic p r i c e f o r modern accommodation. These a r e t h e p e o p l e who a t p r e s e n t i n overcrowded and u n s a t i s f a c t o r y c o n d i t i o n s . The l o c a l a u t h o r i t i e s live have so f a r done a commendable j o b i n b u i l d i n g houses f o r l e t t i n g a t moderate r e n t s t o p e o p l e who c a n n o t a f f o r d e i t h e r t o buy a. house o r t o pay the economic r e n t of a modern h o u s e . full But i n many p a r t s of t h e c o u n t r y the demand i s s t i l l f o r m i d a b l e and t h e programme of b u i l d i n g by p u b l i c a u t h o r i t i e s must be 9. accelerated. The Government i n t e n d t o keep both t h e t o t a l programme of house-building and i t s d i v i s i o n i n S c o t l a n d between t h e p u b l i c and p r i v a t e s e c t o r s under constant review. Their p r e s e n t e x p e c t a t i o n i s t h a t in the y e a r s immediately ahead t h e S c o t t i s h p r i v a t e s e c t o r w i l l p r o v i d e one house f o r s a l e f o r every t h r e e o r f o u r p r o v i d e d by t h e p u b l i c s e c t o r f o r l e t t i n g . Representative t h e building­ b o d i e s o f / s o c i e t i e s and b u i l d e r s have a g r e e d t o j o i n i n p l a n n i n g and programming b u i l d i n g f o r o w n e r - o c c u p a t i o n t h r o u g h o u t G r e a t B r i t a i n along l i n e s which a r e e x p l a i n e d i n t h e P a p e r "The Housing Programme 19^5 t o 1970 p r e s e n t e d c o n c u r r e n t l y by t h e S e c r e t a r y of S t a t e f o r Wales and t h e M i n i s t e r cf h o u s i n g and l o c a l government. 3. see Appendix B. Cmnd. 2771 MffiEDAJJ^CJ; ACTION The b u i l d i n g of 50,000 houses a y e a r w i l l not be a c h i e v e d e a s i l y . 10. It w i l l c a l l f o r i n c r e a s e d e f f i c i e n c y i n t h e c o n s t r u c t i o n i n d u s t r y and t h e b e t t e r use o f t h e i n d u s t r y ' s r e s o u r c e s ; f o r more money from t h e t a x p a y e r ; b e t t e r o r g a n i s a t i o n of t h e h o u s e - b u i l d i n g a u t h o r i t i e s ; of enough l a n d i n t h e r i g h t p l a c e s a t the r i g h t t i m e s . for and f o r t h e p r o v i s i o n At the same time- a p r o p e r s h a r e of b u i l d i n g r e s o u r c e s must be d e v o t e d t o t h e m a i n t e n a n c e , repair and improvement of o l d e r h o u s e s . ^" i^ -"^-l-\J:^5£ J ^ s o u r c e s L 11. e A h e a v y a d d i t i o n a l l o a d w i l l be p l a c e d on the c o n s t r u c t i o n industry. I t c l e a r l y w i l l n o t be a b l e , w i t h i n t h e p e r i o d t o 1970, t o s e c u r e a sufficient e x p a n s i o n of t h e s k i l l e d l a b o u r f o r c e t o a c h i e v e t h e i n c r e a s e d o u t p u t r e q u i r e d s i m p l y by employing more men. productivity, i n c r e a s e of 12. There must a l s o be a s u b s t a n t i a l i n c r e a s e of so as t o i n c r e a s e the i n d u s t r y ' s o u t p u t w i t h o u t a p r o p o r t i o n a t e labour. Much can be done by r a t i o n a l i s a t i o n of t r a d i t i o n a l b u i l d i n g methods, and by b e t t e r management a t a l l l e v e l s , t o s e c u r e r e d u c t i o n s of t i m e , l a b o u r and cost in house-building. There must a l s o be r a p i d l y i n c r e a s i n g use of newer methods of h o u s e - b u i l d i n g by s y s t e m s , i n v o l v i n g t h e c a r e f u l l y assembly on s i t e of f a c t o r y - m a d e components. the planned The programme f o r 1970 w i l l be w i t h i n t h e c a p a c i t y of t h e i n d u s t r y o n l y i f by t h e n a c o n s i d e r a b l y h i g h e r p r o p o r t i o n of t h e h o u s e s e r e c t e d f o r p u b l i c a u t h o r i t i e s a r e b e i n g system-built. Finance 13. The n e c e s s a r y e x p a n s i o n of h o u s e - b u i l d i n g w i l l n o t be a c h i e v e d w i t h o u t more h e l p from t h e t a x p a y e r . I n r e c e n t y e a r s t h e c o s t of h o u s e - b u i l d i n g has r i s e n markedly and f o r the l a s t e i g h t y e a r s i n t e r e s t r a t e s have been a t a p e r s i s t e n t l y high l e v e l . 14. T o g e t h e r t h e s e two f a c t o r s have c r e a t e d p a r t i c u l a r problems f o r t h e l o c a l a u t h o r i t i e s , f o r whom l o a n c h a r g e s on c a p i t a l e x p e n d i t u r e a r e the h e a v i e s t p a r t of t h e a n n u a l c o s t s of h o u s i n g . These annual c o s t s a r e s h a r e d by t h e t a x p a y e r , t h e r a t e p a y e r and t h e t e n a n t s of the h o u s e s . In r e c e n t y e a r s t h e p r o p o r t i o n met by the t a x p a y e r t h r o u g h t h e Exchequer s u b s i d i e s has been insufficient t o keep pace w i t h r i s e s i n t h e c o s t s . Rents c h a r g e d t o t e n a n t s have on a v e r a g e more than doubled o v e r p e r i o d of seven y e a r s , h u t s t i l l meet o n l y 40 p e r c e n t of c o s t s . in a The s h a r e met by t h e l o c a l r a t e p a y e r ( w i t h , some c a s e s , a s s i s t a n c e from Exchequer e q u a l i s a t i o n g r a n t ) has been r i s i n g and was of t h e o r d e r of £20 m i l l i o n i n 1964-65. steadily I t i s g r e a t l y t o the c r e d i t of t h e l o c a l a u t h o r i t i e s t h a t t h e y have c o n t i n u e d t o b u i l d as f a s t t h e y have done d e s p i t e t h i s v e r y heavy burden on t h e r a t e s . as Nevertheless, i f t h e y a r e t o be a b l e t o c a r r y o u t t h e expanded h o u s e - b u i l d i n g programmes which a r e e s s e n t i a l , i t i s n e c e s s a r y t o c a s e t h e r a t e burden by improving t h e Exchequer s u b s i d i e s and b y p u r s u i n g s e n s i b l e r e n t p o l i c i e s . 15. Because of t h e u n c e r t a i n t y c a u s e d by high and sometimes s h a r p l y r a t e s of i n t e r e s t , fluctuatin t h e Government p r o p o s e , a f t e r c o n s u l t a t i o n w i t h the Scottish l o c a l a u t h o r i t y a s s o c i a t i o n s , t h a t t h e main Exchequer s u b s i d y s h o u l d be t o a s t a b l e i n t e r e s t r a t e of 4 p e r c e n t . Each l o c a l a u t h o r i t y w i l l related receive a b a s i c s u b s i d y on n e w l y - b u i l t h o u s e s , c a l c u l a t e d so a s t o p r o d u c e b r o a d l y t h e same e f f e c t on i t s housing a c c o u n t as though t h e l o a n s r a i s e d t o t h e i r c o n s t r u c t i o n had borne i n t e r e s t a t 4 p e r c e n t p e r annum. finance Boing related t o t h e c a p i t a l c o s t of completed h o u s e s , t h e b a s i c s u b s i d y w i l l v a r y w i t h t h a t cost; end, of c o u r s e , i t w i l l v a r y w i t h t h e p r e v a i l i n g r a t e s of interest. D i r e c t comparison w i t h t h e p r e s e n t r a t e s of s u b s i d y i s t h e r e f o r e n o t p o s s i b l e ; b u t t h e improvement o v e r p r e s e n t r a t e s w i l l be s u b s t a n t i a l . Further details of t h e b a s i c s u b s i d y and of t h e s u p p l e m e n t a r y s u b s i d i e s which w i l l be p a i d for c e r t a i n p u r p o s e s a r e g i v e n i n iippendix C* 16. The S c o t t i s h S p e c i a l Housing A s s o c i a t i o n and t h e new town development corporations are wholly Exchequer-financed, on t h e l o c a l r a t e p a y e r s . no p a r t of t h e i r d e f i c i t falling I t has been t h e p r a c t i c e t o pay them b r o a d l y subsidies to those payable to the l o c a l a u t h o r i t i e s , b a s i c s u b s i d y and t h o s e o f t h e a d d i t i o n a l 5. similar and t h e y w i l l r e c e i v e s u b s i d i e s which a r e relevant. the 17* These i m p r o v e d s u b s i d y arrangements w i l l a p p l y t o a l l houses i n r e s p e c t of Bold lype which t e n d e r s a r e s u b m i t t e d f o r the S e c r e t a r y of S t a t e ' s a p p r o v a l on o r a f t e r t h e d a t e of p r e s e n t a t i o n of t h i s P a p e r . 18. The p u r p o s e o f t h e new s u b s i d i e s i s t o p r o v i d e a p r o p e r amount o f Government s u p p o r t t o e n a b l e t h e expanded h o u s i n g programme t o be c a r r i e d o u t w i t h o u t p l a c i n g t o o h e a v y a burden on t h e l o c a l a u t h o r i t i e s . I t i s proper that rents of s u b s i d i s e d h o u s e s s h o u l d be r e v i s e d a t f r e q u e n t i n t e r v a l s t o t a k e a c c o u n t of changing c i r c u m s t a n c e s , p a r t i c u l a r l y r i s i n g i n c o m e s . The more g e n e r o u s s u b s i d i e s now t o be p r o v i d e d c r e a t e an o p p o r t u n i t y f o r a l l a u t h o r i t i e s t o r e v i e w t h e i r r e n t p o l i c i e s so as t o ensure t h a t r e a s o n a b l e l e v e l s of r e n t s and adequate r e n t r e b a t e schemes a v o i d h a r d s h i p and u n f a i r n e s s t o l o c a l a u t h o r i t y t e n a n t s and ratepayers 19* alike. The problem o f h i g h c o s t a n d h i g h i n t e r e s t r a t e s a f f e c t n o t o n l y t h e p u b l i c a u t h o r i t i e s b u t a l s o p o t e n t i a l o w n e r - o c c u p i e r s , though f o r -them t h e cf h i g h i n t e r e s t r a t e s i s l e s s e n e d b y income t a x r e l i e f deterrent on t h e i r i n t e r e s t p a y m e n t s . The Government a r e a n x i o u s t o e n t o u r a g e house ownership by as many as p o s s i b l e and as soon as t h e c o u n t r y ' s economic s i t u a t i o n a l l o w s t h e y w i l l p u b l i s h t h e i r p l a n s f o r b r i n g i n g o w n e r - o c c u p a t i o n w i t h i n the r e a c h of more f a m i l i e s . Imjjr oved J ^ r g a n i s ^ a t i q n . 20. I f the p u b l i c house-building a u t h o r i t i e s are to accomplish t h e i r t a s k s , the f u l l with c o - o p e r a t i o n of t h e c o n s t r u c t i o n i n d u s t r y , i t w i l l be n e c e s s a r y t o p l a n much f u r t h e r ahead -than i n the p a s t . Some 80 - 90 p e r c e n t of t h e houses i n the p u b l i c s e c t o r w i l l be b u i l t by about f i f t y major l o c a l a u t h o r i t i e s , t h e Scottish , S p e c i a l Housing A s s o c i a t i o n and t h e new town development c o r p o r a t i o n s . The lj already jj S c o t t i s h Development Department w i l l work out w i t h a l l t h e s e a u t h o r i t i e s ( a s they/ talicsi jhave w i t h s e v e r a l ) p r o v i s i o n a l programmes f o r a p e r i o d o f about f i v e y e a r s ahead. I n doing so t h e Department w i l l t a k e account of t h e s u b s t a n t i a l l y d i f f e r i n g needs of t h e v a r i o u s a r e a s and of the r a t e of h o u s e - b u i l d i n g which each a u t h o r i t y can r e a s o n a b l y be e x p e c t e d t o a c h i e v e . T h e p r o p o r t i o n of system b u i l d i n g t o be 1 u s e d w i l l be a m a j o r f a c t o r i n d e t e r m i n i n g t h e p r a c t i c a b l e s i z e of t h e s e programmes. 6. 21. I n t h e e x i s t i n g major c e n t r e s of p o p u l a t i o n - and p a r t i c u l a r l y in t h e Glasgow c o n u r b a t i o n - t h e l a n d a v a i l a b l e f o r h o u s i n g development is r a p i d l y d i m i n i s h i n g and t h e emphasis must i n c r e a s i n g l y be p l a c e d on t h e r e d e v e l o p m e n t of e x i s t i n g a r e a s . Many of t h e houses which w i l l be r e p l a c e d a r e so s m a l l and crowded t o g e t h e r t h a t i t w i l l be i m p o s s i b l e w i t h r e a s o n a b l e s t a n d a r d s of p l a n n i n g and a m e n i t y t o r e p l a c e them w i t h t h e same number of modern h o u s e s . F u r t h e r m o r e , t h e growth of i n d u s t r y i n S c o t l a n d w i l l require a substantial p r o v i s i o n of houses i n p l a c e s where t h e e x i s t i n g s t o c k i s i n a d e q u a t e f o r such g r o w t h . The e x i s t i n g New Towns w i l l have an i n c r e a s i n g c o n t r i b u t i o n t o make, and t h e Government a r e w h e t h e r a n o t h e r s h o u l d be d e s i g n a t e d . considering E l s e w h e r e t h e programme of housing r e q u i r e d may w e l l be beyond t h e c a p a c i t y of t h e l o c a l a u t h o r i t y o r authorities c o n c e r n e d and t h e Government c o n s i d e r i t a p p r o p r i a t e t h a t t h e y s h o u l d p r o v i d e a d d i t i o n a l a s s i s t a n c e i n such a r e a s , t h r o u g h t h e agency of t h e Scottish S p e c i a l Housing A s s o c i a t i o n . 22. The c a r r y i n g out of t h e expanded programme, and p a r t i c u l a r l y the w i d e r a d o p t i o n of system b u i l d i n g , w i l l r e q u i r e a new o u t l o o k on t h e p a r t of a l l t h e p u b l i c a u t h o r i t i e s c o n c e r n e d . capacity already exists, or i s b e i n g p r o v i d e d , Substantial productive i n S c o t l a n d by a number of manufa.cturers of v a r i o u s h o u s e - b u i l d i n g s y s t e m s . In most i n s t a n c e s t h e i n i t i a l c o s t s of p r o v i d i n g t h i s c a p a c i t y a r e h e a v y , and p r i c e s which a r e c o m p e t i t i v e w i t h t h e c o s t of t h e more t r a d i t i o n a l forms of b u i l d i n g can be offered only i f t h e m a n u f a c t u r e r s can be a s s u r e d of s i z e a b l e o r d e r s , and a s t e a d y r u n of work. It is therefore of t h e utmost importance t h a t public a u t h o r i t i e s should be p r e p a r e d t o j o i n t o g e t h e r i n t h e arrangement of group programmes which w i l l make f u l l use on a p l a n n e d b a s i s of t h e systems which cafca.. a v a i l a b l e . The S c o t t i s h Development Department, i n c o l l a b o r a t i o n w i t h t h e N a t i o n a l B u i l d i n g Agency, w i l l s e e k t o i d e n t i f y w i t h t h e a u t h o r i t i e s I t a l i c s p r o j e c t s which might be i n c l u d e d i n such group programmes; iin t h e programming of p r o j e c t s ; s u i t e d t o t h e i r needs. the t o a s s i s t them and t o h e l p them t o choose t h e systems b e s t Group programmes of t h i s s o r t can make t h e b e s t use of p r o d u c t i v e c a p a c i t y and keep c o s t s down t o a r e a s o n a b l e l e v e l o n l y i f the a u t h o r i t i e s concerned a r e p r e p a r e d t o l i m i t v a r i a t i o n s on p o i n t s of d e t a i l t h e p l a n n i n g of i n d i v i d u a l h o u s e s . The r a n g e of h o u s e - t y p e s and v a r i e t y f i n i s h e s which the m a n u f a c t u r e r s can o f f e r , in of t o g e t h e r w i t h a t t e n t i o n t o good l a y o u t and p l a n n i n g of each e s t a t e as a w h o l e , can e n s u r e t h a t d u l l n e s s and u n i f o r m i t y do n o t mar t h e e s t a t e s b u i l t under t h e s e programmes. Land. 23. A r i s i n g housing programme can be s u s t a i n e d o n l y i f building land is available. sufficient To be a b l e t o p l a n b u i l d i n g programmes, b o t h p u b l i c a u t h o r i t i e s and p r i v a t e b u i l d e r s need t o know, w e l l i n a d v a n c e , and when t h e y w i l l be a b l e t o b u i l d . The n e c e s s a r y s t e p s must t h e r e f o r e be t a k e n i n good time t o a l l o c a t e and a c q u i r e t h e l a n d , n e c e s s a r y and t o p r o v i d e t h e s e r v i c e s i t w i l l n e e d . p l a n n i n g of b u i l d i n g i n t h e p u b l i c s e c t o r , to c l e a r i t I t a l i c s l i e v e l o p t h e i r if As w e l l as t h e forward a l r e a d y r e f e r r e d to i n paragraph t h e r e must be a f o r w a r d programme of l a n d i d e n t i f i c a t i o n local authorities. where 20, and a c q u i s i t i o n by The S c o t t i s h Development Department w i l l m a i n t a i n and e x i s t i n g c o n s u l t a t i o n s w i t h the l o c a l a u t h o r i t i e s t o ensure j t h a t t h e s e programmes keep w e l l ahead of t h e s t a r t of h o u s e - b u i l d i n g . 24* L o c a l a u t h o r i t i e s and New Town C o r p o r a t i o n s have power t o buy l a n d , c o m p u l s o r i l y i f need b e , f o r h o u s e - b u i l d i n g w h e t h e r by t h e m s e l v e s or by p r i v a t e development. I n o r d e r t o e n s u r e a b a l a n c e d h o u s e - b u i l d i n g programme t h e l o c a l a u t h o r i t i e s w i l l be a s k e d t o use t h e i r p o w e r s , where n e c e s s a r y , to ensure t h a t p r i v a t e b u i l d e r s as w e l l as t h e l o c a l a u t h o r i t i e s can a c q u i r e l a n d i n good time. 25* The Land Commission which has a l r e a d y been announced ^ , with power t o buy l a n d where t h i s i s n e c e s s a r y t o s e c u r e i t s e a r l y development o r r e d e v e l o p m e n t , i s an e s s e n t i a l p a r t o f t h e Government's P l a n s f o r The Commission's powers w i l l housing. e n s u r e t h a t l a n d i s f o r t h c o m i n g as and when needed f o r h o u s i n g p u r p o s e s , and the Commission w i l l be a b l e , i n a p p r o p r i a t e c a s e s , 8. Cmnd. 2771 to d i s p o s e of l a n d f o r houses f o r owner-ocoupa i i o n on c o n c e s s i o n a r y t e r m s . 26. The f o r e g o i n g p a r a g r a p h s have been concerned m a i n l y w i t h t h e b u i l d i n g new h o u s e s . of But t h e p r e s e n t s t o c k of I5 m i l l i o n houses i n c l u d e s many which c a n n o t be r e p l a c e d f o r a l o n g time t o come, a l t h o u g h t h e y a r e n o t up t o modern standards. I t i s o f the g r e a t e s t i m p o r t a n c e t h a t b o t h l o c a l a u t h o r i t i e s prnva.te owners s h o u l d make v i g o r o u s e f f o r t s and t o t a k e a d v a n t a g e of t h e Exchequer a s s i s t a n c e which i s a v a i l a b l e under p r e s e n t l e g i s l a t i o n to e n a b l e improvements be made t o t h e s e h o u s e s . neglected. to The maintenance and r e p a i r t f houses must a l s o n o t be For t h e p u b l i c s e c t o r t h i s i s one a s p e c t of t h e whole q u e s t i o n of management o f houses which t h e S e c r e t a r y o f S t a t e has r e m i t t e d f o r by t h e r e c e n t l y - r e c o n s t i t u t e d S c o t t i s h housing A d v i s o r y Committee. r e n t e d houses i n t h e p r i v a t e s e c t o r , consideration As f o r the new form of r e n t c o n t r o l i n t r c d u c e d by the Rent A c t 1 965 i s d e s i g n e d t o he more f l e x i b l e and f a i r , b o t h t o l a n d l o r d s and t o t e n a n t s , than p r e v i o u s c o n t r o l s and ought t o encourage l a n d l o r d s t o m a i n t a i n a d e q u a t e l y t h e h o u s e s t h e y own. EOTCLUSION 2 7 . r.Thai f i r s t p a r t of t h i s Paper s e t s uut t h e G-overnment s aim, and d e s c r i b e s 1 t h e c i r c u m s t a n c e s i n which t h e y have d e c i d e d t o a c c o r d p r i o r i t y t o an expanded h o u s e - b u i l d i n g programme. y e a r by 197* i s p r o j e c t e d . In S c o t l a n d a programme r i s i n g t o 50,000 houses a This i s o n l y t h e f i r s t s t a g e o f a developijsrg, p l a n ; a s more i n f o r m a t i o n becomes a v a i l a b l e i t w i l l he c a r r i e d f o r w a r d w i t h i n c r e a s i n g momentum end p r e c i s i o n . 28. The second p a r t d e s c r i b e s t h e a c t i o n p r o p o s e d t o a t t a i n t h e i n i t i a l objective. I t w i l l c a l l f o r whole-hearted c o - o p e r a t i o n between a l l concerned - h o u s e - b u i l d e r s , l o c a l and c e n t r a l h o u s e - b u i l d i n g a u t h o r i t i e s and many o t h e r a g e n c i e s and i n d i v i d u a l s . With t h i s concerted e f f o r t , which t h e y i n t e n d t o b r i n g about, t h e Government b e l i e v e t h a t i n t h e new few y e a r s g r e a t p r o g r e s s c a r be ma.de towards housing t h e p e o p l e of S c o t l a n d d e c e n t l y and w e l l . 9. APPENDIX A BETTER ' INFORMATION 1. The problem of o b t a i n i n g , and s t i l l more of k e e p i n g u p - t o - d a t e , adequate basic i n f o r m a t i o n about housing c o n d i t i o n s and p r o g r e s s i s b e i n g c a r e f u l l y studied and s t e p s a r e b e i n g t a k e n b o t h t o make good t h e immediate d e f i c i e n c i e s i n knowledge and a l s o t o p r o v i d e a c o n t i n u o u s f l o w of 2. information. The -]96'i Census c o n t a i n e d a w i d e r range of i n f o r m a t i o n about housing than p r e v i o u s c e n s u s e s . housing i n f o r m a t i o n , A further sample c e n s u s , c o v e r i n g a s i m i l a r r a n g e of i s t o be t a k e n i n 1966. These, t a k e n t o g e t h e r , m a t e r i a l l y improve knowledge of t h e number of h o u s e s i n S c o t l a n d , will their condition, tenure and oc cup tin cy G-nd of how t h e s e f a c t o r s a r e changing, but t h e time between c e n s u s e s , even i f r e d u c e d t o f i v e y e a r s , i s t o o l o n g t o g i v e an e n t i r e l y p i c t u r e of t h e changing 3. satisfactory situation. Census r e s u l t s must t h e r e f o r e be supplemented. For t h i s r e a s o n a sample s u r v e y has r e c e n t l y been c a r r i e d out i n S c o t l a n d on b e h a l f of t h e Scottish Development Department and a s i m i l a r sample s u r v e y has been c a r r i e d out i n G-lasgow for t h e Corporation. The r e s u l t s of t h e s e two s u r v e y s , which have been c o - o r d i n a t e d , w i l l be a v a i l a b l e e a r l y i n 1966. undertaken i n t h e f u t u r e on a s c a l e s u f f i c i e n t closely F u r t h e r r e g u l a r s u r v e y s w i l l be t o p r o v i d e i n d i c a t i o n s of t h e most important t r e n d s . 4. houses. Perhaps t h e most d i f f i c u l t gap i n i n f o r m a t i o n c o n c e r n s t h e c o n d i t i o n of One r e a s o n f o r t h i s i s t h e absence of any cor.mon s t a n d a r d by r e f e r e n c e v;hich a s s e s s m e n t s can be made of f i t n e s s f o r h a b i t a t i o n and of p o t e n t i a l i - c y improvement. for The S c o t t i s h Housing A d v i s o r y Committee has s e t up a s u b - i o n m i t t e e to examine t h e f o r m u l a t i o r . of such s t a n d a r d s and t h e i r work should e n a b l e t h e of S c o t l a n d ' s housing t o be more p r e c i s e l y 5. i s used. to state evaluated. More i n f o r m a t i o n i s needed a l s o on t h e way i n which t h e s t o c k of houses The sample s u r v e y w i l l g i v e c u r r e n t i n f o r m a t i o n aibout occupancy. But an i m p o r t a n t a s p e c t of t h i s q u e s t i o n i s t h e way i n which t e n a n t s a r e chosen f o r houses a v a i l a b l e f o r l e t t i n g . This i s of p a r t i c u l a r i m p o r t a n c e i n r e l a t i o n t o "che need i n S c o t l a n d f o r g r e a t e r r r c b i l i t y of l a b o u r . owned by l o c a l a u t h o r i t i e s , As most houses f o r l e t t i n g are a sub-committee of t h e S c o t t i s h Housing A d v i s o r y Committee has been s e t up t o examine t h e methods by which the a u t h o r i t i e s (1) allocate their houses. A t the same time t h e S c o t t i s h Housing A d v i s o r y Committee itself i s c o n s i d e r i n g t h e whole q u e s t i o n of p r o v i d i n g houses t o meet t h e needs of industry. 6. I t i s i m p o r t a n t t h a t a s much a s p o s s i b l e of the new i n f o r m a t i o n i n t h e s e ways s h o u l d be g e n e r a l l y a v a i l a b l e . collected The r e s u l t s of the sample s u r v e y will be p u b l i s h e d and t h e p o s s i b i l i t y of p u b l i s h i n g a w i d e r r a n g e of housing s t a t i s t i c s being examined. (2) CONFIDENTIAL N is 5o NBCT; SUBSIPISSJ^CJLLOCiJ; a U T K C P J T Y HOUSING­ 1. The J , i l l * A B i l l w i l l be i n t r o d u c e d d u r i n g t h e p r e s e n t S e s s i o n of P a r l i a m e n t t o p r o v i d e f o r a new s u b s i d y s t r u c t u r e i n S c o t l a n d . framework i s s e t out i n t h e f o l l o w i n g 2. The new s u b s i d i e s w i l l comprise (a) A basic (b) Supplementary s u b s i d i e s where a p p r o p r i a t e f o r (ii) (iii) ­ subsidy expensive high sites flats overspill (iv) building i n special materials (v) precautions against subsidence, (vi) 3* paragraphs. Bajsic _o.nl ^ ^ ^ £ e n t a r ^ . s t i b s i d i ^ s . (i) The broad, s p e c i a l needs P e r i o d of^subjgjfliesj:\ndjnaview* The new s u b s i d i e s w i l l a p p l y t o houses f o r w h i c h t e n d e r s a r e r e c e i v e d f o r a p p r o v a l by t h e S e c r e t a r y o f S t a t e t h e d a t e of p r e s e n t a t i o n o f t h e P a p e r , following accept f o r the o v e r s p i l l supplement ( p a r a g r a p h 5 ( b ) ) t h e y w i l l be p a y a b l e f o r 60 y e a r s , s u b j e c t t o p r o v i s i o n f o r p o s s i b l e r e v i e w from t i m e t o t i m e . /;.. The b a s i c ^ u b s i d y , . An e n t i r e l y new form o f b a s i c s u b s i d y w i l l t a k e t h e p l a c e o f t h e u n i t s u b s i d y ( n o r m a l l y .-S32 a house but l e s s o r more i n some i n s t a n c e s ) p a y a b l e under e x i s t i n g legislation. I t w i l l be c a l c u l a t e d i n r e s p e c t o f a l l approve.! d w e l l i n g s completed i n any f i n a n c i a l y e a r and w i l l t a k e t h e form o f a c o n t r i b u t i o n t o w a r d s the l o a n c h a r g e s i n c u r r e d i n financing t h e i r c a p i t a l cost ( i n c l u d i n g l a n d ) . The s u b s i d y w i l l be c a l c u l a t e d as t h e d i f f e r e n c e between l o a n c h a r g e s p a y a b l e on l o a n s of t h e amount o f t h e c a p i t a l c o s t s a t c u r r e n t r a t e o f i n t e r e s t and a t A p e r c e n t , l o r these p u r p o s e s t h e c u r r e n t r a t e of i n t e r e s t f o r any y e a r ' s s u b s i d y c a l c u l a t i o n w i l l be d e t e r m i n e d by t h e S e c r e t a r y o f S t a t e as r e p r e s e n t i n g t h e a v e r a g e r a t e of i n t e r e s t p a i d on new l o a n s r a i s e d by l o c a l a u t h o r i t i e s i n t h e p r e c e d i n g y e a r . (i) 5 . Supplementary (a) subsidies The s u b s i d i e s f o r e x p e n s i v e s i t e s , h i g h f l a t s , precautions against s u b s i d e n c e and b u i l d i n g i n s p e c i a l m a t e r i a l s w i l l be on t h e same g e n e r a l l i n e s as t h o s e p a y a b l e f o r t h e s e purposes under e x i s t i n g l e g i s l a t i o n but t h e r e w i l l he some d e t a i l e d changes i n t h e f o r c a l c u l a t i n g them and i n t h e q u a l i f y i n g ( b ) conditions. D w e l l i n g s b u i l t by r e c e i v i n g a u t h o r i t i e s u n d e r o v e r s p i l l will formulae agreements q u a l i f y f o r a d d i t i o n a l Exchequer s u b s i d y of £12f a y e a r f o r a p e r i o d of 10 y e a r s . This w i l l match t h e c o n t r i b u t i o n by t h e exporting a u t h o r i t y which i s r e q u i r e d u n d e r t h e Housing and Town Development ( S c o t l a n d ) .'.ct ( c ) S^fcisd ( i ) 195?. £SMS Some a u t h o r i t i e s which a r e remote from centres of s u p p l y o f b u i l d i n g l a b o u r end m a t e r i a l s q u a l i f y f o r a d d i t i o n a l under e x i s t i n g l e g i s l a t i o n . Highlands and I s l a n d s . subsidy This i s o f p a r t i c u l a r v a l u e t o t h e The s u b s i d y w i l l c o n t i n u e w i t h a d j u s t m e n t s t o t a k e a c c o u n t o f t h e a s s i s t a n c e t o w a r d s h i g h e r co t s which w i l l be g i v e n t h r o u g h t h e b a s i c ( i i ) subsidy, F o r a u t h o r i t i e s whose e x i s t i n g commitments f o r h o u s i n g n e c e s s a r i l y c r e a t e an e x c e p t i o n a l f i n a n c i a l w i l l he s p e c i a l l y ( i i i ) The B i l l w i l l b u r d e n , t h e new r a t e s of s u b s i d y supplemented. a l s o e n a b l e a d d i t i o n a l s u b s i d y t o he p a i d t o a u t h o r i t i e s who p r o v i d e h o u s i n g accommodation u r g e n t l y local required t o meet t h e n e e d s of incoming worker,',, where i t c a n n o t be p r o v i d e d w i t h o u t imposing a h e a v y f i n a n c i a l burden on t h e l o c a l 6. Hojtjels^jrant. The maximum g r a n t pa; a b l e u n d e r S e c t i o n 89 of Housing ( S c o t l a n d ) xict 1950 w i l l be i n c r e a s e d from £7 t o £15 a bedroom. (ii) authority. the