Eric Pickles MP (Conservative Chairman, Former Shadow Secretary of State for CLG): What guidance has been issued to (a) local authorities and (b) ALMOs on the level of service charges levied by them on their leaseholders?
Ian Austin MP (Parliamentary under-Secretary of State for CLG): In February 1997, the Department issued guidance to social landlords on how to comply with two sets of directions issued at that time. The Social Landlords Discretionary Reduction of Service Charges (England) Directions 1997 give social landlords discretion to reduce or waive leaseholders' bills in specified circumstances. The Social Landlords Mandatory Reduction of Service Charges (England) Directions 1997 require them to reduce bills in certain cases when special Government assistance is applied for from specified programmes. The Department’s 2006-07 Housing Revenue Account (HRA) Manual also provides guidance to local authorities on appropriate accounting treatment of mixed leaseholder and tenanted blocks, including general advice on how to account for income and expenditure on works to common parts. The above guidance does not distinguish between local authorities and their ALMOs.
Ian Austin MP (Parliamentary under-Secretary of State for CLG): In February 1997, the Department issued guidance to social landlords on how to comply with two sets of directions issued at that time. The Social Landlords Discretionary Reduction of Service Charges (England) Directions 1997 give social landlords discretion to reduce or waive leaseholders' bills in specified circumstances. The Social Landlords Mandatory Reduction of Service Charges (England) Directions 1997 require them to reduce bills in certain cases when special Government assistance is applied for from specified programmes. The Department’s 2006-07 Housing Revenue Account (HRA) Manual also provides guidance to local authorities on appropriate accounting treatment of mixed leaseholder and tenanted blocks, including general advice on how to account for income and expenditure on works to common parts. The above guidance does not distinguish between local authorities and their ALMOs.
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