Housing (Financial Provisions) (Scotland) Act 1968

• (3) An application under this section must specify the dwelling and the works proposed to be carried out and, where those works comprise the provision of part only of the standard amenities, must—

• (a) if the application is made by virtue of subsection (1) of this section, contain a statement that the dwelling is already provided with the remainder;

• (b) if the application is made by virtue of subsection (2) of this section, contain a statement that it is not practicable at reasonable expense to provide the dwelling with all of the standard amenities and give the facts on which the statement is based.

• (4) Subject to subsection (5) of this section, an application under this section must also contain a statement either that the applicant is the occupier of the dwelling or that the occupier has consented in writing to the making of the application.

• (5) An application under this section as respects works to be carried out in compliance with an improvement notice served, or an undertaking accepted, under Part IV of the principal Act shall be in such form as the local authority may direct, and subsection (4) of this section shall not apply in respect of such an application.

• (6) An application under this section shall not be entertained if it relates to a dwelling provided after the end of the year 1944, unless the dwelling was provided by the conversion before the end of the year 1958 of a building erected before the end of the year 1944.

Approval of applications for standard grants

41

• (1) Subject to subsection (5) of this section, a local authority shall approve an application for a standard grant if—

• (a) they are satisfied as to the matters mentioned in subsections (2) and (3) of this section, and

• (b) in the case of an application made by virtue of section 40(2) of this Act, they are satisfied also as to the matters mentioned in paragraphs (a) and (b) of that subsection,

and shall not approve any application if not so satisfied.

• (2) The local authority must be satisfied that after the execution of the works specified in the application the dwelling will be in such condition as not to be unfit for human habitation, and that it is likely to remain in that condition and available for use as a dwelling for a period of not less than fifteen years.

• (3) The local authority must also be satisfied that the applicant is, in respect of every parcel of land on which the works are to be carried out (other than land proposed to be sold or leased to him under section 145(4) of the principal Act), either the owner or the lessee under a lease of which there remains unexpired at the date of the application a period of not less than fifteen years.

• (4) In considering an application made by virtue of section 40(2) of this Act the local authority shall have regard to the estimated cost of the works which would be required to provide the dwelling with all of the standard amenities and the value which it is estimated that the dwelling (or the building of which the dwelling forms part) would have if works to provide the dwelling with all of the standard amenities were carried out.

• (5) Subsection (1) of this section shall not have effect so as to oblige a local authority to approve an application for a standard grant as respect works which include the provision of a fixed bath or shower in a part of a dwelling which is not a bathroom unless the works are to be carried out in compliance with an improvement notice served, or an undertaking accepted, under Part IV of the principal Act.

• (6) Where the local authority do not approve an application for a standard grant they shall, if the applicant so requests, give him a written statement of the ground or grounds on which they have not approved it, and if, in the case of an application made by virtue of section 40(2) of this Act, that ground is, or those grounds include, the fact that the authority are not satisfied as to the matters mentioned in paragraphs (a) and (b) of that subsection, the said statement shall set out the reasons why the authority are not so satisfied.

Amount of standard grants

42

• (1) The amount of a standard grant shall, subject to this section, be one-half of the cost shown to have been incurred in executing the works in respect of which it is made.

• (2) If any of the works are not exclusively for the purpose of providing one or more of the standard amenities, only so much of the cost of carrying out those works as is, in the opinion of the local authority, attributable to the provision of the standard amenity or standard amenities shall be taken into account under subsection (1) of this section.

• (3) Subject to this section, there shall be a limit on the amount of a standard grant determined in accordance with the following Table, and the limit shall depend on the number of items in the following Table which will be provided by the works and shall be the total of the amounts specified in column 2 of that Table for those items or £350, whichever is the less.

List of amenities	Amount allowed towards limit
A fixed bath or shower in a bathroom or elsewhere.	£25 or, if the bathroom is being provided by the building of a new structure or the conversion of outbuildings attached to the dwelling (or to the building of which the dwelling forms part) and, before the time when the local authority approve the application, they have been satisfied that it is not reasonably practicable to provide the bathroom in any other way, such higher amount as the local authority shall fix at that time as being in their opinion one-half of the part of the cost to be reasonably incurred in executing the works, being the part of the cost attributable to the provision of the fixed bath or shower.
A wash-hand basin	£5.
A hot and cold water supply at a fixed bath or shower.	£35.
A hot and cold water supply at a wash-hand basin.	£15.
A hot and cold water supply at a sink.	£25.
A water closet	£40 or, if the works comprise the installation of a septic tank and, before the time when the local authority approve the application, they have been satisfied that the connection of the water closet with main drainage is not possible or reasonably practicable, such higher amount as the local authority shall fix at that time as being in their opinion one-half of the part of the cost to be reasonably incurred in executing the works, being the part of the cost attributable to the provision of the water closet.
Facilities for storing food	£10.
If the works comprise, in connection with all or any of the amenities provided, the bringing of a piped supply of cold water into the dwelling for the first time.	Such amount as the local authority shall fix at the time when they approve the application as being in their opinion one-half of the part of the cost to be reasonably incurred in executing the works, being the part of the cost attributable to the bringing of the piped supply into the dwelling.

• (4) The local authority shall, when they approve the application, inform the applicant of any decision taken by them under the Table fixing a higher amount in respect of the cost attributable to the provision of a fixed bath or shower or of a water closet, or fixing any amount in respect of the cost of bringing a piped supply of cold water into the dwelling.

• (5) In determining the limit the amount specified for any item in the Table shall not be brought in more than once, and no account shall be taken of any amenity provided by the works if, at the time when the works were begun, the dwelling was provided with an amenity of that kind unless part of the cost incurred in executing the works is attributable to interference with or replacement of that amenity and the local authority are satisfied that it would not have been reasonably practicable to avoid the interference or replacement.

• (6) References in this section to the cost incurred in executing or carrying out works shall include references to fees payable to professional persons employed in connection with those works.

• (7) The Secretary of State may by order vary the provisions of subsections (3), (4) and (5) of this section in any respect, and an order under this subsection may contain such transitional or other supplemental provisions as appear to the Secretary of State to be expedient.

• (8) The power to make orders conferred on the Secretary of State by subsection (7) of this section shall be exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

• (9) Section 21 of the House Purchase and Housing Act 1959 shall not have effect, and this section shall have effect only, in relation to applications for standard grants made on or after 16th August 1964.

Application to standard grants of provisions relating to improvement grants

43

The provisions of sections 30 to 38 of this Act shall, with the necessary modifications, apply in relation to standard grants as they apply in relation to improvement grants, so, however, that in relation to standard grants sections 36 and 37 of this Act shall each apply with the omission of subsection (1) thereof.

Grants by local authorities for provision of new houses for agricultural population

Power of local authorities to make grants in respect of provision of new houses for agricultural population

44

• (1) A local authority may, and if so required by the Secretary of State shall, submit to the Secretary of State a scheme or schemes for assisting the provision of housing accommodation in new houses for the agricultural population, and on approval by the Secretary of State of any scheme so submitted a local authority may in accordance therewith give assistance in the manner hereinafter provided.

• (2) Assistance under this section shall be given by way of payment on the completion of the house of a lump sum not exceeding either—

• (a) one-half of the cost of the house, or

• (b) two hundred and forty pounds in the case of a house containing three apartments, or three hundred pounds in the case of a house containing more than three apartments.

• (3) Any person applying for assistance under this section shall furnish to the local authority full particulars of the house proposed to be erected, together with a statement, approved by an officer of the authority authorised in that behalf, of the estimated cost of the house, and such plans and specifications thereof as the authority may require.

• (4) If the local authority approve an application under this section they shall issue to the applicant a certificate of their approval, which shall set out the terms and conditions upon which assistance will be given.

• (5) On the completion of the house the applicant shall furnish the local authority with such information as they may require as to the cost of the house and shall satisfy them that it has been erected in accordance with the terms and conditions of the said certificate, and the authority shall not be liable to give assistance under this section until they are so satisfied.

• (6) A local authority may in any case refuse to approve an application under this section on any grounds which seem to them sufficient, and shall refuse to approve such an application—

• (a) in respect of any house which does not contain at least three apartments of superficial areas not less than such areas as may be specified in the scheme of assistance, and such conveniences as may be so specified;

• (b) in respect of any house in respect of which a grant has been made under section 1 of the Hill Farming Act 1946 or under section 77 of the Agriculture (Scotland) Act 1948 or under section 22(2) of the Crofters (Scotland) Act 1955.

• (7) Where a local authority refuse to approve an application under this section they shall, if the applicant so requests, notify him in writing of the grounds of their refusal.

• (8) In this section the expression " apartment" does not include any apartment not designed for use as a living-room or as a bedroom.

Conditions to be observed with respect to houses

45

• (1) In the case of a house in respect of the provision of which assistance has been given under section 44 of this Act, the conditions specified in Schedule 4 to this Act shall, subject to the provisions of this Part of this Act, be observed with respect to the house for a period of forty years from the date of its completion and shall, so long as they are required to be so observed, be deemed to be part of the terms of any lease or tenancy of the house granted by the owner thereof, and shall be enforceable accordingly.

• (2) Where in the case of any house the condition specified in paragraph 2 of Schedule 4 to this Act is for the time being required to be observed with respect thereto, the local authority may at any time, if satisfied that the house is no longer required for a member of the agricultural population, waive their right to enforce that condition in relation to that house:

Provided that the power conferred by this subsection shall be exercisable only with the consent of the Secretary of State.

• (3) A local authority may make any exercise of the power conferred on them by subsection (2) of this section conditional on the application in relation to the house in question, for such part of the period of forty years from the date of completion of the house as remains unexpired at the time of the exercise, of such other conditions (if any) as the Secretary of State may approve; and section 46 of this Act shall apply in relation to any breach of a condition which is for the time being required to be observed with respect to the house by virtue of this subsection as it applies in relation to a breach of the conditions specified in Schedule 4 to this Act.

Enforcement of conditions

46

• (1) In the event of a breach of any of the conditions specified in Schedule 4 to this Act at a time when they are required to be observed with respect to a house, the owner for the time being of the house shall, subject to subsection (2) of this section, forthwith become liable to repay to the local authority the appropriate proportion of the sum paid by the authority under section 44 of this Act by way of assistance in respect of the provision of the house, together with interest on the appropriate proportion as from the date of payment of the sum by the authority.

In this subsection—

• (a) the expression " the appropriate proportion ", in relation to a sum, means a part thereof proportionate to the extent to which the period during which conditions are required by section 45 of this Act to be observed with respect to the house remains unexpired at the date of the occurrence of the breach ; and

• (b) " interest" means compound interest calculated at the prescribed rate and with yearly rests.

• (2) If in any case the local authority are satisfied that the breach was not due to the act, default or connivance of the owner of the house, they may, with the consent of the Secretary of State and subject to such conditions (if any) as the Secretary of State may approve, waive the liability of the owner to make repayment under subsection (1) of this section, and in the case of a continuing breach may, with the like consent and subject to such conditions as aforesaid, suspend the enforcement of that liability for such period as appears to them to be necessary for enabling the owner to remedy the breach.

• (3) Upon satisfaction of a liability of an owner of a house to make repayment under subsection (1) of this section to a local authority, observance with respect to the house of the conditions specified in Schedule 4 to this Act shall cease to be requisite.

Voluntary repayment of assistance given under s. 44

47

The owner of a house in respect of the provision of which assistance has been given under section 44 of this Act may, at any time when the conditions specified in Schedule 4 to this Act are required to be observed with respect to the house, pay to the local authority the like amount as would become payable to them under section 46 of this Act in the event of a breach at that time of any of those conditions, and on the making of the payment observance with respect to the house of those conditions shall cease to be requisite.

Exchequer contributions towards expenses of local authorities under schemes of assistance

48

• (1) The Secretary of State shall, subject to the provisions of this Act, make or undertake to make Exchequer contributions towards the expense incurred by a local authority in giving assistance under section 44 of this Act.

• (2) An Exchequer contribution under subsection (1) of this section shall be a sum equal to three-quarters of the annual loan charges referable to the amount paid by way of assistance, payable for each of the forty financial years beginning with the year in which was completed the house in respect of the provision of which the assistance was given.

This subsection shall, in any case where assistance is given in respect of the provision of a house in the Highlands and Islands, have effect with the substitution for the words " three-quarters " of the words " seven-eighths ".

• (3) For the purposes of this section, the annual loan charges referable to the amount paid by way of assistance shall (whatever may be the manner in which the local authority have provided or intend to provide the money requisite for giving the assistance) 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 paid by way of assistance, being money the period for the repayment of which is forty years.

• (4) In the event of a breach of any of the conditions specified in Schedule 4 to this Act at a time when they are required to be observed with respect to a house, the local authority shall be liable to repay to the Secretary of State in respect of each Exchequer contribution already paid under this section a sum bearing the same proportion to the amount of the Exchequer contribution as the sum (excluding interest) repayable to the local authority by the owner of the house under section 46 of this Act bears to the sum paid by them by way of assistance, together with interest thereon as from the date on which the Exchequer contribution was paid:

Provided that—

• (a) the provisions of this subsection shall not apply if the liability of the owner to make repayment in respect of the breach of the condition has been duly waived in accordance with section 46(2) of this Act, or if and so long as the enforcement of that liability is duly suspended in accordance with that subsection ;

• (b) if the local authority show to the satisfaction of the Secretary of State that, notwithstanding that they have taken all practicable steps for the purpose, they have been unable to recover the whole or some part of any sum repayable to them by reason of the breach of the condition, the Secretary of State may remit the repayment of the whole or any part of the sum repayable to him under this subsection.

• (5) Where under section 47 of this Act any sum is repaid to the local authority in respect of any house, the authority shall be liable to repay to the Secretary of State in respect of each Exchequer contribution already made a sum bearing the same proportion to the amount of the Exchequer contribution as the sum (excluding interest) repaid to the authority bears to the sum paid by them by way of assistance, together with interest thereon as from the date on which the Exchequer contribution was paid.

• (6) In this section " interest" means compound interest calculated at the prescribed rate and with yearly rests.

Other forms of financial assistance by local authorities

Power of local authority to make advances for purpose of increasing housing accommodation

49

• (1) A local authority may, subject to such conditions as may be approved by the Secretary of State, advance money, subject to the provisions hereinafter contained, to any person for the purpose of—

• (a) acquiring houses;

• (b) constructing houses;

• (c) converting into houses buildings which have been acquired by that person or acquiring buildings and converting them into houses ; or

• (d) altering, enlarging, repairing or improving houses ;

whether the houses or buildings are within or outside the district of the local authority.

• (2) Before advancing money under this section for the purpose specified in paragraph (a) of subsection (1) thereof the local authority shall satisfy themselves that the house or houses to be acquired is or are, or will be made, in all respects fit for human habitation, and before advancing money under this section for any of the purposes specified in paragraphs (b) to (d) of the said subsection (1) the authority shall satisfy themselves that the house or houses to be constructed, altered, enlarged, repaired or improved or into which the building or buildings is or are to be converted, as the case may be, will, when the construction, alteration, enlargement, repair, improvement or conversion has been completed, be in all respects so fit.

• (3) The following provisions shall have effect with respect to an advance under this section:—

• (a) the advance, together with interest thereon, shall be secured by a bond and disposition in security of lands with which the advance is concerned, or by an assignation in security of such a lease of those lands as is mentioned in paragraph (f) of this subsection ;

• (b) the amount of the principal of the advance shall not exceed, in the case of a house or houses to be acquired, the value of the subjects disponed or assigned in security, and, in any other case, the value which it is estimated the subjects disponed or assigned in security will bear when the construction, conversion, alteration, enlargement, repair or improvement has been carried out;

• (c) the bond and disposition or assignation in security may provide for repayment being made either by instalments of principal or by an annuity of principal and interest combined, so however that—

• (i) in the event of any of the conditions subject to which the advance is made not being complied with, the balance for the time being unpaid shall become repayable on demand by the local authority, and

• (ii) the said balance may in any event be repaid at any term of Whitsunday or Martinmas by the debtor after one month's written notice of intention to repay has been given to the authority;

• (d) where the advance is for any of the purposes specified in paragraphs (b) to (d) of subsection (1) of this section it may be made by instalments from time to time as the works of construction, conversion, alteration, enlargement, repair or improvement progress;

• (e) the advance shall not be made except after a valuation duly made on behalf of the local authority;

• (f) no advance shall be made unless the estate or interest in the lands proposed to be disponed or assigned in security is either ownership or a lease of which a period of not less than ten years in excess of the period fixed for the repayment of the advance remains unexpired on the date on which the assignation in security is granted.

In this subsection any reference, in relation to an advance, to a bond and disposition in security shall include a reference to a bond and such other deed of heritable security as may be agreed between the parties making and receiving the advance.

• (4) An advance under this section may be made in addition to assistance given by the local authority in respect of the same house under any other Act or any other provision of this Act.

Power of local authority to guarantee repayment of advances by building societies, etc., and Exchequer contributions to loss thereby incurred

50

• (1) A local authority may, in accordance with proposals in that behalf made by them and approved by the Secretary of State, guarantee the repayment to a building society within the meaning of the Building Societies Act 1962 or a society registered under the Industrial and Provident Societies Act 1965 of any advances, with interest thereon, made by the society to any of its members for the purpose of enabling them to build or acquire houses, whether within or outside the district of the authority.

• (2) Where, on the submission to the Secretary of State by a local authority of proposals under this section, the Secretary of State is satisfied that the proposed guarantee extends only to the principal of, and interest on, the amount by which the sum to be advanced by the society in question exceeds the sum which would normally be advanced by it without the guarantee of the authority, and that the liability under the guarantee of the authority cannot be greater than two-thirds of that principal and interest, the Secretary of State, if he approves the proposals, may, with the consent of the Treasury, undertake to make to the authority an Exchequer contribution of not more than one-half of any loss sustained by them under the terms of the guarantee.

Power of local authority to assist in provision of separate service water pipes for houses

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• (1) A local authority may if they think fit give assistance in respect of the provision of a separate service pipe for a house in their district which has a piped supply of water from a water main, but no separate service pipe.

• (2) Subject to this section, the assistance shall be by way of making a grant in respect of all or any part of the expenses incurred in the provision of the separate service pipe.

• (3) If the local authority are themselves the local water authority (as defined in section 5(4) of the Water (Scotland) Act 1946) by whom water will be supplied by means of the separate service pipe, and themselves provide or assist in providing the separate service pipe, they may, instead of, or in addition to, making a grant under subsection (1) of this section, remit all or any part of the expenses incurred by them in providing the separate service pipe, being expenses which would otherwise be recoverable from a person having an interest in the house.

• (4) The reference to expenses in subsection (2) of this section includes, in a case where all or any part of the works required for the provision of the separate service pipe are carried out by a local water authority as defined as aforesaid (whether in exercise of default powers or in any other case), a reference to sums payable by the owner of the house, or any other person, to the local water authority for carrying out the works.

Miscellaneous and general

Loans by Public Works Loan Commissioners for provision or improvement of housing accommodation

52

• (1) The Public Works Loan Commissioners may, subject to the provisions of this section, lend money to any person entitled to any land either as owner or as lessee under a lease of which a period of not less than fifty years remains unexpired at the date of the loan for the purpose of constructing or improving, or facilitating or encouraging the construction or improvement of, houses, and any such person may borrow from the Public Works Loan Commissioners such money as may be required for the purposes aforesaid.

• (2) A loan for any of the purposes specified in subsection (1) of this section shall be secured with interest by a heritable security over the land and houses in respect of which that purpose is to be carried out and over such other land and houses, if any, as may be offered as security for the loan.

• (3) Any such loan may be made whether the person receiving the loan has or has not power to borrow on bond and disposition in security or otherwise, independently of this Act, but nothing in this Act or the principal Act shall affect any regulation, statutory or otherwise, whereby any company may be restricted from borrowing until a definite portion of capital is subscribed for, taken or paid up.

• (4) The following conditions shall apply in the case of any such loan:—

• (a) the period for repayment shall not exceed forty years ;

• (b) no money shall be lent on the security of any land or houses unless the estate or interest therein proposed to be burdened is either ownership or a lease of which a period of not less than fifty years remains unexpired at the date of the loan;

• (c) the money lent shall not exceed such proportion as is hereinafter authorised of the value, to be ascertained to the satisfaction of the Public Works Loan Commissioners, of the estate or interest in the land or houses proposed to be burdened in pursuance of subsection (2) of this section; but loans may be made by instalments from time to time as the building of houses or other work on the land so burdened progresses, so, however, that the total loans do not at any time exceed the amount aforesaid ; and the heritable security may be granted accordingly to secure such loans so to be made from time to time.

• (5) The proportion of such value as aforesaid authorised for the purpose of the loan shall be three-fourths:

Provided that if the loan exceeds two-thirds of such value as aforesaid, the Public Works Loan Commissioners shall require, in addition to such heritable security as is mentioned in subsection (2) of this section, such further security as they may think fit.

Application of Part II to agricultural tenants, etc.

53

• (1) For the purposes of the provisions of this Part of this Act relating to improvement grants and to standard grants, a tenant, crofter, landholder or statutory small tenant shall be deemed to be the owner of any house, dwelling, building or other land on his farm, croft or holding if in respect of the execution thereon of improvement works or, as the case may be, of works which comprise the provision of any of the standard amenities he would, on the termination of his tenancy, be entitled to compensation under the Agricultural Holdings (Scotland) Act 1949 or the Crofters (Scotland) Acts 1955 and 1961 or the Small Landholders (Scotland) Acts 1886 to 1931 (as the case may be) as for an improvement.

• (2) A tenant, crofter, landholder or statutory small tenant shall, for the purposes of the provisions of this Part of this Act relating to grants by local authorities for the provision of new houses for the agricultural population, be deemed to be the owner of any house on his farm, croft or holding in respect of which he would, on the termination of his tenancy, be entitled to compensation under the Agricultural Holdings (Scotland) Act 1949 or the Crofters (Scotland) Acts 1955 and 1961 or the Small Landholders (Scotland) Acts 1886 to 1931 (as the case may be) as for an improvement.

• (3) Where by virtue of subsection (1) of this section an improvement grant or a standard grant is made, or where assistance is given under section 44 of this Act, to a crofter, a landholder or a statutory small tenant in respect of a house or dwelling on his croft or holding, the local authority shall forthwith intimate to the landlord of the croft or holding that an improvement grant or a standard grant has been so made or that assistance has been so given, as the case may be, and shall inform him of the amount thereof.

• (4) If at any time within the period during which conditions are required by section 30 of this Act (including that section as applied by section 43 thereof), or by section 45 of this Act, to be observed with respect to a house or dwelling provided on a farm, croft or holding otherwise than by the landlord thereof compensation becomes payable in respect of the house or dwelling, or of any works (being improvement works or, as the case may be, works comprising the provision of any of the standard amenities) executed in relation thereto, as for an improvement under the Agricultural Holdings (Scotland) Act 1949 or the Crofters (Scotland) Acts 1955 and 1961 or the Small Landholders (Scotland) Acts 1886 to 1931 (as the case may be), so much of the value of the house or dwelling or works as is attributable to the sum paid by way of improvement grant or standard grant, or by way of assistance under section 44 of this Act, as the case may be, shall be taken into account in assessing the compensation so payable and shall be deducted therefrom.

• (5) The landlord of a farm, croft or holding on which there is a house or dwelling with respect to which conditions are for the time being required to be observed by virtue of section 30 of this Act (including that section as applied by section 43 thereof), or of section 45 of this Act, shall not at any time within the period during which those conditions are so required to be observed be entitled to obtain any consideration by way of rent or otherwise in respect of so much of the value of the house or dwelling, or of any works (being improvement works or, as the case may be, works comprising the provision of any of the standard amenities) executed in relation thereto, as is attributable to the sum paid by way of improvement grant or standard grant, or by way of assistance under section 44 of this Act, as the case may be.

Power of Secretary of State to make regulations

54

The Secretary of State may by statutory instrument make regulations prescribing anything required or authorised by this Part of this Act to be prescribed:

PART III — General Financial Provisions

Abolition or reduction of Exchequer contributions

Power of Secretary of State to abolish or reduce certain kinds of Exchequer contribution

55

• (1) The Secretary of State may by order direct that, while the order remains in force, such Exchequer contributions as may be specified in the order—

• (a) shall cease to be payable, or

• (b) shall be reduced to such rate or amount as may be specified in the order, or

• (c) shall be payable for such reduced number of years as may be so specified,

either as respects all approved houses, or the cost of such houses or of the sites thereof, or as respects approved houses of such description or in such area only, or the cost of such houses or of the sites thereof, as may be specified in the order.

• (2) In this section—

• (a) the expression " approved houses" means approved houses within the meaning of section 1 of this Act and approved houses within the meaning of the Housing (Scotland) Act 1962 ; and

• (b) the expression " Exchequer contributions " means—

• (i) in relation to approved houses of the former class, Exchequer contributions payable under any of the enactments mentioned in Schedule 8 to this Act, so far as such Exchequer contributions are payable to a local authority, and

• (ii) in relation to approved houses of the latter class, Exchequer contributions payable under Part I of the said Act of 1962.

• (3) An order made under this section shall be so expressed as to apply only to approved houses the proposals in respect of which were or are received by the Secretary of State after such date as may be specified in the order ; and an order may specify for the purposes of this subsection a day earlier than the day of the making of the order:

Provided that—

• (a) in the case of an order made before 10th May 1977, so far as relating to approved houses within the meaning of section 1 of this Act, the order shall not for the purposes of this subsection specify a day earlier than the day on which the draft of the order is laid before the Commons House of Parliament under subsection (4) of this section ;

• (b) an order shall not be made in relation to approved houses within the meaning of the said Act of 1962 before 3rd July 1972.

• (4) The power to make orders conferred on the Secretary of State by this section shall be exercisable by statutory instrument and an order shall not be made under this section unless a draft thereof has been laid before the Commons House of Parliament and has been approved by a resolution of that House, and before laying such a draft the Secretary of State shall consult with such associations of recipient authorities (within the meaning of section 1 of this Act) as appear to him to be concerned and with any recipient authority with whom consultation appears to him to be desirable.

Power of Secretary of State to reduce Exchequer contributions under s. 35

56

• (1) The Secretary of State may from time to time by order provide, as respects improvement grants made under Part II of this Act in pursuance of applications approved by local authorities after such date as may be specified in the order, for reducing the proportion of the annual loan charges referable to the amount of any such grant by reference to which the amount of Exchequer contributions under section 35 of this Act are to be computed:

Provided that the said proportion shall not be reduced to less than two-thirds.

• (2) An order under this section providing for reducing the proportion of the annual loan charges referred to in subsection (1) of this section shall provide for reducing to a corresponding extent, in relation to improvement grants made as mentioned in the said subsection, the proportion of any sum required by section 35(4) of this Act to be paid to the Secretary of State.

• (3) The power to make orders conferred on the Secretary of State by this section shall be exercisable by statutory instrument and an order shall not be made under this section unless a draft thereof has been laid before the Commons House of Parliament and has been approved by a resolution of that House ; 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.

Provisions as to payment of Exchequer contributions, etc.

Payment and receipt of certain Exchequer contributions

57

• (1) Exchequer contributions falling to be made—

• (a) to a local authority under any of the enactments specified in Schedule 5 to this Act, or under any enactment in this Act (other than section 19 thereof), or

• (b) to the Scottish Special Housing Association under section 93 of the Housing (Scotland) Act 1950 or section 23 of the Housing and Town Development (Scotland) Act 1957 or section 26 of this Act,

shall be, and shall be deemed always to have been, payable at such times and in such manner as the Treasury may direct and subject to such conditions as to records, certificates, audit or otherwise as the Secretary of State may, with the approval of the Treasury, impose.

• (2) It shall be a condition of the right of a local authority to receive any Exchequer contribution payable to them under any of the enactments mentioned in Schedule 8 to this Act that the authority shall carry to the credit of their housing revenue account any amount which falls to be carried by them to the credit of that account by virtue of paragraph 1(4) of Schedule 7 to this Act.

Power of Secretary of State to reduce, suspend, discontinue or transfer particular Exchequer contributions

58

• (1) The Secretary of State may, in any of the circumstances mentioned in subsection (3) of this section, reduce the amount of any Exchequer contributions, being Exchequer contributions falling to be made under any of the enactments specified in Schedule 6 to this Act in respect of a particular subsidised unit, or suspend or discontinue the payment of such Exchequer contributions or part thereof, as he thinks just in those circumstances.

• (2) Where such Exchequer contributions fall to be made to a local authority in respect of a subsidised unit in relation to which an annual grant is payable by the authority to a development corporation or a housing association, then, if the amount of the Exchequer contributions is reduced or the payment of the Exchequer contributions or part thereof is suspended or discontinued under this section, the authority may reduce the annual grant to a corresponding or any less extent or suspend the payment thereof, or of a corresponding part thereof, for a corresponding period or discontinue the payment thereof, or of a corresponding part thereof, as the case may be.

• (3) The circumstances referred to in subsection (1) of this section are—

• (a) that the Exchequer contributions fall to be made to a local authority and the Secretary of State is satisfied that the authority have failed to discharge any of their duties under the Housing (Scotland) Acts 1950 to 1965 or the principal Act or this Act or that they have failed to exercise any power mentioned therein in any case where any such power ought to have been exercised;

• (b) that the subsidised unit was provided by a development corporation or a housing association in pursuance of authorised arrangements made with a local authority or special arrangements made with the Secretary of State, and the Secretary of State is satisfied that the development corporation or housing association have made default in giving effect to the terms of any such arrangements;

• (c) that the Exchequer contributions fall to be made subject to any conditions and the Secretary of State is satisfied that any of those conditions has not been complied with;

• (d) that the subsidised unit has been converted, demolished or destroyed;

• (e) that the subsidised unit is not fit to be used or has ceased to be used for the purpose for which it was intended;

• (f) that the subsidised unit has been sold or has been leased for a stipulated duration exceeding twelve months;

• (g) that the subsidised unit has been transferred, whether by sale or otherwise.

• (4) Where the Secretary of State's power under subsection (1) of this section to discontinue the payment of the whole or part of any Exchequer contributions falling to be made to a recipient authority in respect of a particular subsidised unit becomes exercisable in the circumstances mentioned in paragraph (f) or paragraph (g) of subsection (3) of this section and the subsidised unit has become vested in or has been leased to another recipient authority, then, if the Secretary of State exercises that power he may make to that other authority Exchequer contributions of the like amount as he would otherwise have made to the first-mentioned authority if the conditions (if any) subject to which the first-mentioned Exchequer contributions fell to be made had been complied with.

• (5) In this section—

• " the subsidised unit " means the house, hostel or other land in respect of which Exchequer contributions fall to be made, whether they fall to be made in respect of it or its site or in respect of land comprising it or in respect of the cost of any houses, or of the acquisition of any land, comprising it;

and the provisions of section 12 of this Act shall apply for the purposes of this section as they apply for the purposes of sections 1 to 10 of this Act, except that references in this section to special arrangements made by a housing association with the Secretary of State shall include also references to arrangements which the Secretary of State may have made with a housing association for the provision of houses with a view to their approval under any Act passed before the Housing (Financial Provisions, &c.) (Scotland) Act 1967.

Effect on certain payments of house ceasing to be available as such

59

• (1) Where under any of the enactments mentioned in subsection (2) of this section (being provisions in pursuance of which payments may be made by local authorities by way of financial assistance in connection with the provision or improvement of housing accommodation) a periodical payment would, apart from this section, have fallen to be made on or after 1st January 1951 in respect of a house to any person other than a local authority, that payment shall not be made if, before the making thereof, the Secretary of State is satisfied that, during the whole or the greater part of the period to which the payment is referable, the house has not been available as a dwelling fit for human habitation:

Provided that nothing in this subsection shall prevent the making of a periodical payment in respect of any house if the Secretary of State is satisfied that the house could not with reasonable diligence have been made available, during the whole or the greater part of the period to which the payment is referable, as a dwelling fit for human habitation.

Any question as to the period to which any payment is referable shall be determined for the purposes of this subsection by the Secretary of State.

• (2) The enactments referred to in subsection (1) of this section are—

• section 2 of the Housing, &c. Act 1923,

• sections 1 and 2 of the Housing (Rural Workers) Act 1926,

• section 100 of the Housing (Scotland) Act 1950.

• (3) Where the power or duty of a local authority to make any payment is wholly or partly discharged by virtue of subsection (1) of this section, the Secretary of State may make such consequential reductions as he thinks appropriate in any Exchequer contributions payable to the authority.

Accounts

The housing revenue account

60

• (1) Every local authority shall keep an account (to be called " the housing revenue account") of the income and expenditure of the authority in respect of—

• (a) all houses and other buildings which have been provided at any time after 12th February 1919 under—

• (i) Part III of the Housing (Scotland) Act 1925, or

• (ii) any enactment relating to the provision of housing accommodation for the working classes repealed by that Act, or

• (iii) Part V of the Housing (Scotland) Act 1950. or

• (iv) Part VII of the principal Act;

• (b) all land which at any time after the said date has been acquired or appropriated for the purposes of any of the enactments mentioned or referred to in paragraph (a) of this subsection, or which is deemed to have been acquired under Part III of the said Act of 1925 by virtue of section 15(4) of the Housing (Scotland) Act 1935;

• (c) all dwellings in respect of which the Secretary of State has undertaken to make an Exchequer contribution to the local authority under section 35 of the said Act of 1935;

• (d) all dwellings provided or improved by the local authority in accordance with improvement proposals approved by the Secretary of State under—

• (i) section 2 of the Housing (Scotland) Act 1949. or

• (ii) section 105 of the said Act of 1950. or

• (iii) section 13 of this Act;

and all land acquired or appropriated by the authority for the purpose of carrying out such proposals ;

• (e) all houses approved by the Secretary of State for the purposes of—

• (i) section 4 of the Housing (Repairs and Rents) (Scotland) Act 1954, or

• (ii) section 19 of this Act;

• (f) such other houses as the local authority with the consent of the Secretary of State may from time to time determine.

• (2) Where a house is for the time being vested in a local authority by reason of the default of any person in carrying out the terms of any arrangements under which assistance in respect of the provision, reconstruction or improvement of the house has been given under any enactment relating to housing, the house shall be deemed for the purposes of subsection (1) of this section to be a house which has been provided by the authority under Part VII of the principal Act.

• (3) Notwithstanding subsection (1) of this section, a building provided or converted for use as a hostel or as part of a hostel and approved by the Secretary of State for the purposes of section 27(1) of the Housing (Scotland) Act 1949 or section 89(1) of the Housing (Scotland) Act 1950 or section 21(1) of this Act shall not be included amongst the buildings in respect of which the local authority are required by subsection (1) of this section to keep a housing revenue account:

Provided that if at any time the Secretary of State is satisfied that the building has ceased to be used as a hostel or as part of a hostel he may direct that it shall be so included.

• (4) The provisions of Schedule 7 to this Act shall have effect as respects the keeping by a local authority of the housing revenue account.

The housing repairs account

61

• (1) Subject to the provisions of this section, every local authority shall for the purpose of equalising so far as practicable the annual charge to their revenue in respect of the repair, improvement and maintenance of houses, buildings and dwellings in respect of which the housing revenue account is to be kept, keep an account (to be called " the housing repairs account") and shall in each financial year carry to the credit of that account from the housing revenue account in respect of each house, building and dwelling such amount as they may think proper, not being less than eight pounds, and such amount, if any, as may be necessary to make good any deficit shown in the housing repairs account at the end of the last preceding financial year.

• (2) Subject to the provisions of this Act, moneys standing to the credit of the housing repairs account shall be applied only in meeting expenses incurred in respect of the repair, improvement and maintenance of the houses, buildings and dwellings in respect of which the housing revenue account is to be kept.

• (3) If at any time it appears to the Secretary of State, after consultation with the local authority, that the moneys standing to the credit of the housing repairs account are more than sufficient for the purposes for which the account is to be kept or that it is no longer necessary for the account to be kept, he may give such directions as he thinks proper for the reduction of the amounts to be credited to the account or the suspension of the carrying of credits thereto, or for the closing of the account and the application of any moneys standing to the credit thereof, as the case may be.

The housing equalisation account

62

• (1) Every local authority shall, if they think it desirable for the purpose of equalising the income of the housing revenue account derived from Exchequer contributions payable to them under any of the enactments mentioned in Schedule 8 to this Act over any period during which loan charges required to be debited to the housing revenue account will be payable, keep an account (to be called " the housing equalisation account") and shall, if they keep such an account, carry to the credit of that account from the housing revenue account such sums, and shall apply an amount equal to the sums so credited in such manner, as may be prescribed.

• (2) Where a local authority close their housing equalisation account, they shall carry to the credit of their housing revenue account any sums standing to the credit of their housing equalisation account when it is closed.

Temporary application of moneys in housing accounts

63

• (1) An amount equal to any moneys standing to the credit of the housing repairs account or the housing equalisation account of a local authority, and not for the time being required for the purposes for which they will ultimately be applicable, may be used by the authority for the purpose of any statutory borrowing power possessed by them subject to the conditions specified in subsection (2) of this section, and so far as not so used shall be invested temporarily in any security in which trustees are for the time being authorised by law to invest, and an amount equal to the income from such investment shall be credited to the account.

• (2) The conditions subject to which moneys may be used as mentioned in subsection (1) of this section shall be the following, that is to say—

• (a) the moneys so used shall be repaid to the account out of the county or burgh fund within the period, and by methods, within and by which a loan raised under the statutory borrowing power would be repayable:

Provided that the local authority shall repay to the account the moneys so used or the balance thereof for the time being outstanding, as the case may be, as and when required for the purposes of the account, and may make such repayment at any time within the period aforesaid, and in either case the repayment shall be made out of the said fund or out of moneys which would have been applicable to the repayment of a loan if raised under the statutory borrowing power;

• (b) in the accounts of the county or burgh fund an amount equal to interest (calculated at such rate as may be determined by the local authority to be equal as nearly as may be to the rate of interest which would be payable on a loan raised under the statutory borrowing power) on any moneys so used shall be credited to the account and debited to the branch of expenditure for the purpose for which the moneys are so used ;

• (c) the statutory borrowing power shall be deemed to be exercised by such use as fully in all respects as if a loan of the same amount had been raised in exercise of the power, and the provisions of any enactment as to the re-borrowing of sums raised under the statutory borrowing power shall apply accordingly.

Borrowing by local authorities

Power of local authorities to borrow for purposes of certain enactments

64

Without prejudice to any power of borrowing conferred on them by any other enactment, a local authority may borrow money for the purposes of—

• (a) the following provisions of the Housing (Scotland) Act 1950, namely, sections 100 and 104 and Part VII;

• (b) the following provisions of this Act, namely, sections 13, 15, 17, 18, 24, 27 to 32, 34 to 38, 48, 49 and 52.

Government payments and receipts

Government payments and receipts

65

• (1) Except in so far as otherwise expressly provided in this Act, there shall be paid out of money provided by Parliament—

• (a) all sums payable and all expenses incurred by the Secretary of State under this Act; and

• (b) any increase attributable to the provisions of this Act in the sums payable out of money so provided under any other enactment.

• (2) Except in so far as otherwise expressly provided in this Act, there shall be paid into the Consolidated Fund—

• (a) any receipts of the Secretary of State under this Act; and

• (b) any other sums falling to be so paid in consequence of any of the provisions of this Act.

PART IV — Supplemental

Application of provisions of Housing (Scotland) Act 1966

66

The following provisions of the principal Act shall apply as if references therein to that Act included references to this Act, that is to say—

• section 1 (definition of local authority for purposes of Act),

• section 2 (power of local authority to appoint committee),

• section 5 (determination of unfitness of house for human habitation),

• section 165 (power of local authority to issue local bonds),

• section 183 (except paragraphs (b) to (g) of subsection (1) thereof) (power of entry for survey, etc.),

• section 184 (penalty for obstructing execution of Act),

• section 191 (authentication of orders, etc., by local authority),

• section 193(1) (default of local authority),

• sections 196 to 198 (provisions regarding orders, forms and regulations),

• sections 200 to 202 (provisions regarding exercise of functions by Secretary of State).

Interpretation

67

• (1) Subject to subsection (2) of this section, and except in so far as the context otherwise requires, expressions used in this Act and in the principal Act have the same meaning in this Act as in that Act.

• (2) In this Act, unless the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say—

• " development corporation " means a development corporation within the meaning of the New Towns (Scotland) Act 1968 ;

• " Exchequer contribution " means a payment (other than a payment by way of advance or loan) which the Secretary of State is required or authorised by or under this Act, or any Act relating to housing passed before the commencement of this Act, to make for housing purposes;

• " financial year ", in relation to a local authority, has the same meaning as in section 174 of the Local Government (Scotland) Act 1947;

• " Highlands and Islands " means the area comprising the counties of Argyll, Caithness, Inverness, Ross and Cromarty, Sutherland, Orkney and Zetland, but excluding any large burgh;

• " loan charges " means, in relation to any borrowed moneys, the sums required for the payment of interest on those moneys and for the repayment thereof either by instalments or by means of a sinking fund ;

• " the principal Act " means the Housing (Scotland) Act 1966.

• (3) Any reference in this Act to any enactment shall be construed as including a reference to that enactment as amended, extended or applied by or under any other enactment including, unless the context otherwise requires, this Act.

Construction of references to this Act, etc.

68

• (1) Without prejudice to section 70 of this Act, any reference in any provision of this Act to, or to things done or falling to be done under, this Act or the principal Act or the Housing (Scotland) Act 1950 or the Housing (Scotland) Act 1925 or any provision of any of those Acts shall, in so far as the context permits, be construed as including, in relation to times, circumstances and purposes in relation to which the enactments repealed by this Act or by the principal Act or by the Housing (Scotland) Act 1950 or by the Housing (Scotland) Act 1925, or the corresponding provision of any of those enactments, had effect, a reference to, or to things done or falling to be done under, those enactments or, as the case may be, that corresponding provision:

Provided that this subsection shall not have effect in relation to section 60 of, or Schedule 7 to, this Act.

• (2) Nothing in this section or section 69 or section 70 of this Act shall be taken as affecting the general application of section 38 of the Interpretation Act 1889 with regard to the effect of repeals.

Consequential amendment of Housing (Scotland) Act 1966

69

The principal Act shall have effect subject to the amendments specified in Schedule 9 to this Act, being amendments consequential on the provisions of this Act.

Repeals and savings

70

• (1) Subject to the provisions of this section, the enactments mentioned in Schedule 10 to this Act are hereby repealed to the extent specified in relation thereto in column 3 of that Schedule.

• (2) The repeal by this Act of any enactment shall not affect—

• (a) any order, regulation, rule or other instrument made or having effect as if made under that enactment, or

• (b) any agreement, application, approval, condition, determination, undertaking or other thing made, given, imposed or done, or having effect as if made, given, imposed or done, under that enactment,

and any such instrument or other thing shall, if in force at the commencement of this Act, continue in force and so far as it could have been made, given, imposed or done under this Act, have effect, and be treated, as if made, given, imposed or done under the corresponding provision of this Act.

• (3) The repeal by this Act of any enactment re-enacted in this Act shall not affect any existing undertaking or other liability to make a periodical or other payment after the commencement of this Act, and the provisions of this Act shall apply so as to require that payment to be made under the corresponding provision of this Act.

• (4) The repeal by this Act of any enactment shall not affect the saving contained in section 11(1) of the Housing (Financial Provisions, &c.) (Scotland) Act 1967 in relation to the enactments repealed by the said section 11(1) and mentioned in Schedule 3 to the said Act.

• (5) So much of any enactment or other document as refers expressly or by implication to any enactment repealed by this Act or by the Housing (Scotland) Act 1950 or by the Housing (Scotland) Act 1925 shall, in so far as the context permits and as may be necessary to preserve the effect of the first-mentioned enactment or other document, be construed as referring, or (as the case may require) as including a reference, to this Act or the corresponding enactment therein.

• (6) The repeal by this Act of any provision of any Act shall not affect the application of that provision to any other provision of that Act which is not repealed by this Act.

Short title, commencement and extent

71

• (1) This Act may be cited as the Housing (Financial Provisions) (Scotland) Act 1968.

• (2) This Act shall come into force on the expiration of a period of three months beginning with the date on which it is passed.

• (3) This Act shall extend to Scotland only.

SCHEDULE 1

1

For the purposes of this Act the cost of a site shall be taken to be—

• (a) if the site was acquired by a local authority under any enactment relating to housing, the expenses incurred by the authority in connection with the acquisition ;

• (b) if the site was acquired by a local authority otherwise than under any such enactment, such amount as the Secretary of State may determine, having regard to the purposes for which the site was acquired, the expenses incurred in connection with the acquisition, the time elapsed since the acquisition and the use made of the site before its appropriation for housing purposes;

• (c) if the site was acquired by a recipient authority other than a local authority, either of the following, as the Secretary of State may determine, having regard to the matters mentioned in sub-paragraph (b) of this paragraph, that is to say—

• (i) the expenses incurred by the recipient authority in connection with the acquisition ; or

• (ii) the value of the site as certified by the Secretary of State.

2

For the purposes of this Act, any question as to—

• (a) what constitutes a separate site, or

• (b) on what part of such a site any building has been erected, or

• (c) how much of any expenses incurred by a local authority in connection with the acquisition of any land is to be attributed to any site forming part only of the land,

shall be determined by the Secretary of State.

3

For the purposes of any determination under sub-paragraph (a) or sub-paragraph (b) of paragraph 2 of this Schedule—

• (a) where two buildings are contiguous to each other, or are separated from each other by a street only, the two buildings shall, if the Secretary of State thinks proper, be deemed to be on the same site ; and

• (b) where any land has been acquired in connection with the provision of a building and has been or is to be used for the purpose of a new street to which the building is or will be contiguous, that land shall be deemed to form part of the site of the building.

4

In this Schedule—

• " building " includes any land appertaining to a building and any land appropriated for the purposes of a building which has not been erected ; and

• " street " includes a public highway and any court, alley, passage or square, whether a thoroughfare or not.

SCHEDULE 2

PART I

Interpretation

1

In this Schedule—

• (a) " relevant financial year," in relation to any house, means the financial year preceding that in which the house was completed ;

• (b) references in relation to a local authority to the product of a rate of a specified sum are references to the product of a rate of that sum in the pound for the district of the local authority for the relevant financial year, and section 9(1) of the Local Government (Financial Provisions) (Scotland) Act 1963 shall apply for the purpose of calculating that product.

PART II

Calculation of Exchequer contribution

2

• (1) A comparison shall be made between—

• (a) the total of the amounts carried to the credit of the local authority's housing revenue account, as adjusted in accordance with this paragraph, for the relevant financial year (in this paragraph referred to as the " credits "), and

• (b) the total of the amounts carried to the debit of that account, as adjusted as aforesaid, for that year (in this paragraph referred to as the " debits ").

• (2) For the purposes of the comparison required by sub-paragraph (1) of this paragraph—

• (a) it shall be assumed that in the credits, for the income for the relevant financial year from rents in respect of the houses to which the said account relates and any amounts carried to the credit of the account for that year under sub-paragraphs (4) and (5) of paragraph 1 of Schedule 7 to this Act, there has been substituted an amount equal to the local authority's total housing valuation for the relevant financial year multiplied by the fraction determined in respect of the relevant financial year by the Secretary of State in accordance with Part IV of this Schedule ;

• (b) there shall be excluded from the debits any expenditure by way of rebates from rents ;

• (c) there shall be excluded from the debits any surplus shown in the account at the end of the relevant financial year and from the credits any surplus brought forward from the account for the immediately preceding financial year.

• (3) If it appears to the Secretary of State that any amount, or part of any amount, carried to the credit or to the debit of the local authority's housing revenue account for the relevant financial year ought to be left out of account for the purposes of the comparison required as aforesaid, he may, after consulting the authority, direct that for the purposes of that comparison the said amount or part of that amount shall be excluded from the credits or from the debits, as the case may be.

3

If on the comparison required as aforesaid being made there is a deficit, the amount of that deficit shall be reduced by the amount which bears to that deficit—

• (a) in the case of any house completed before the first day of the financial year commencing in 1968, the same proportion as the amount of the exchequer equalisation grant payable to the local authority for the relevant financial year under the Local Government (Financial Provisions) (Scotland) Act 1954 bears to the authority's relevant local expenditure as certified by the Secretary of State to have been estimated under the said Act of 1954 according to the latest estimate made before the end of the relevant financial year ; and

• (b) in the case of any house completed on or after the first day of the financial year commencing in 1968, the same proportion as the amount of the resources element of the rate support grant payable to the local authority for the relevant financial year under the Local Government (Scotland) Act 1966 bears to the authority's relevant local expenditure as certified by the Secretary of State to have been estimated according to the latest estimate made before the end of the relevant financial year, as calculated for the purposes of Part II of Schedule 1 to that Act in accordance with the provisions of paragraphs 4 and 5 of the said Part II,

and where the amount of the deficit as so reduced exceeds the product of a rate of two shillings and sixpence, the Secretary of State shall pay to the authority an additional Exchequer contribution, the amount of which shall be determined according to the following Table—

Where the amount of the local authority's reduced deficit—	Amount of additional Exchequer contribution—
exceeds the product of a rate of two shillings and sixpence but not of a rate of three shillings and sixpence	fifteen pounds
exceeds the product of a rate of three shillings and sixpence but not of a rate of four shillings and sixpence	thirty pounds
exceeds the product of a rate of four shillings and sixpence but not of a rate of five shillings and sixpence	forty-five pounds
exceeds the product of a rate of five shillings and sixpence but not of a rate of six shillings and sixpence	sixty pounds
exceeds the product of a rate of six shillings and sixpence	seventy-five pounds

4

• (1) This paragraph applies to any house completed on or after the first day of the financial year commencing in 1967.

• (2) Paragraph 3 of this Schedule shall apply to any house to which this paragraph applies, but as if for the references to the sum of two shillings and sixpence and to each of the sums listed in column 1 of the Table there were substituted respectively references to each of those sums adjusted by—

• (a) dividing by the estimated aggregate product of a penny rate for the areas of all local authorities for the relevant financial year or, where that year was not a year of revaluation, for the last preceding year of revaluation, and

• (b) multiplying by the said estimated aggregate for the financial year commencing in 1965,

and rounded off to the nearest penny.

• (3) In sub-paragraph (2) of this paragraph, " year of revaluation " has the same meaning as in section 9 of the Valuation and Rating (Scotland) Act 1956.

5

For the purposes of the calculations required by this Part of this Schedule to be made in relation to any local authority for any financial year there shall be used such accounts, whether provisional or final, of the authority (being accounts for that financial year) as the Secretary of State may direct; and if provisional accounts are used nothing in this Part of this Schedule shall be taken to require the making of any recalculation on the final accounts becoming available.

PART III

Ascertainment of total housing valuation for the relevant financial year

6

For the purposes of this Schedule a local authority's total housing valuation for any relevant financial year shall be ascertained in accordance with this Part of this Schedule.

7

There shall be ascertained—

• (a) the aggregate of the gross annual values of all the houses to which the local authority's housing revenue account related at the end of the relevant financial year, and

• (b) the aggregate of the gross annual values of all the houses to which the local authority's housing revenue account related at the end of the financial year immediately preceding the relevant financial year:

8

The amounts ascertained under paragraph 7 of this Schedule shall be added together and their sum shall be divided by two; and the result shall be the local authority's total housing valuation for the relevant financial year.

9

Where, by reason of a change in the areas of local authorities, houses are transferred from one local authority to another local authority, the Secretary of State may, having regard to the gross annual values of the houses and the date and circumstances of their transfer, direct that such other method of calculation as he may consider appropriate shall be used for the purposes of this Part of this Schedule in lieu of the method of calculation specified in the two last foregoing paragraphs.

10

Any reference in this Part of this Schedule to the gross annual value of a house to which a local authority's housing revenue account related at the end of any financial year shall be construed as a reference to the gross annual value of that house, determined under section 6 of the Valuation and Rating (Scotland) Act 1956, as shown in the valuation roll in operation on the first day of the financial year immediately following the financial year in question ; so however that if no gross annual value determined as aforesaid is shown for that house in that valuation roll the reference shall be construed as a reference to such value as may be estimated by the assessor to be the gross annual value, determined as aforesaid, of the house.

11

References in this Part of this Schedule to the assessor, in relation to any house, are references to the assessor appointed under section 1 of the Valuation and Rating (Scotland) Act 1956, for the area in which the house is situated.

PART IV

Determination of fraction referred to in paragraph 2(2)(a) of this Schedule

12

• (1) The Secretary of State shall estimate—

• (a) the aggregate of the total amounts carried to the credit of the housing revenue accounts of all local authorities for the relevant financial year,

• (b) the aggregate of the total amounts carried to the debit of those accounts for that year, and

• (c) the aggregate of the total housing valuations of all local authorities for that year.

• (2) For the purposes of sub-paragraph (1) of this paragraph—

• (a) it shall be assumed that in the credits, for the income for the relevant financial year from rents in respect of the houses to which the said accounts relate and any amounts carried to the credit of the accounts for that year under sub-paragraphs (4) and (5) of paragraph 1 of Schedule 7 to this Act, there has been substituted an amount equal to one-third of the aggregate of the Exchequer contributions payable to the said authorities for that year under any of the enactments mentioned in Schedule 8 to this Act;

• (b) sub-paragraphs (2)(b) and (c) and (3) of paragraph 2 of this Schedule shall apply in like manner as they apply for the purposes of the comparison required by sub-paragraph (1) of the said paragraph.

13

The amount by which the estimated aggregate of the debits referred to in head (b) of paragraph 12(1) of this Schedule exceeds the estimated aggregate of the credits referred to in head (a) of the said paragraph 12(1) shall be expressed as a fraction of the estimated aggregate of the total housing valuations referred to in head (c) of the said paragraph 12(1).

SCHEDULE 3

1

The dwelling shall not be used for purposes other than those of a private dwelling-house.

2

AH reasonable steps shall be taken to secure the maintenance of the dwelling so as to be in all respects fit for human habitation.

3

The dwelling shall at all times at which it is not occupied—

• (a) by the applicant for the grant or a member of his family; or

• (b) where the applicant is a trustee within the meaning of the Trusts (Scotland) Act 1921, by a person who under the trust is interested in the dwelling or the proceeds of sale thereof, or by a member of the family of such a person ; or

• (c) by a person who on the death of the applicant has (whether or not in consequence of a disposition by will) become beneficially entitled to, or to an interest in, the interest of the applicant in the dwelling or in the proceeds of sale thereof, or by a member of the family of such a person ; or

• (d) by a member of the agricultural population in pursuance of a contract of service and otherwise than as a tenant;

be let or kept available for letting:

4

Subject to the provisions of subsections (4) and (5) of section 32 of this Act, the rent payable by a tenant of the dwelling shall not exceed—

• (a) in a case where a maximum rent with respect to the dwelling has been fixed under subsection (1) of the said section 32, the amount thereof;

• (b) in any other case, and subject to the provisions of section 32(3) of this Act, an amount equal to the aggregate of—

• (i) the rent at which the dwelling was last let before the improvement works were begun, and

• (ii) a sum calculated at a rate per annum not exceeding the appropriate percentage of the fraction of the approved expense of executing the improvement works or of the approved proportion of that expense (according as the works were for the improvement of a single dwelling or of two or more dwellings) that fell to be borne by the applicant for the grant; and

• (iii) any sum recoverable in respect of the dwelling by way of repairs increase or by way of 1957 Act increase (other than any such sum included in the rent referred to in head (i) above),

and no fine, premium or other like sum shall be taken in addition to the rent.

5

The owner of the dwelling shall, on being required so to do by the local authority, certify that the conditions specified in paragraphs 1, 3 and 4 of this Schedule are being observed with respect to the dwelling, and any tenant of the dwelling shall, on being so required in writing by the owner, furnish to him such information as he may reasonably require for the purpose of enabling him to comply with this condition.

6

In the event of a tenant assigning his interest in, or otherwise parting with the possession of, the dwelling, it shall not be lawful for any person in consideration thereof to make any payment other than rent or for the tenant to receive, directly or indirectly, any such payment.

7

Where the dwelling is occupied for the time being by a member of the agricultural population in pursuance of a contract of service, then if that contract is determined—

• (a) by less than four weeks' notice given by the employer, or

• (b) by dismissal of the employee without notice, or

• (c) by the death of either party,

the employer or his personal representative shall permit the employee (or, in the case of his death, any person residing with him at his death) to continue to occupy the dwelling free of charge from the determination of the contract until the expiration of a period of four weeks beginning with the date on which the notice is given or, if the contract is determined otherwise than by notice, with the date on which it is determined.

SCHEDULE 4

1

The house shall be so maintained as to be in all respects fit for human habitation.

2

Subject to the provisions of section 45(2) of this Act, the house shall not be occupied otherwise than by a member of the agricultural population.

3

The house shall not be let at a rent exceeding—

• (a) except in such a case as is mentioned in head (b) of this paragraph, the rent fixed by the local authority at the time when they approved the application for assistance;

• (b) in a case to which paragraph 9 of Schedule 3 to the Valuation and Rating (Scotland) Act 1956 applies, the rent so fixed reduced by virtue of the said paragraph 9.

4

Where the house is occupied for the time being by a member of the agricultural population in pursuance of a contract of service, men if that contract is determined—

• (a) by less than four weeks' notice given by the employer,

• (b) by dismissal of the employee without notice, or

• (c) by the death of either party,

the employer or his personal representative shall permit the employee (or, in the case of his death, any person residing with him at his death) to continue to occupy the house free of charge from the determination of the contract until the expiration of a period of four weeks beginning with the date on which the notice is given or, if the contract is determined otherwise than by notice, with the date on which it is determined.

5

The owner of the house shall from time to time, on being so required by the local authority, furnish to the authority a certificate to the effect that the conditions specified in this Schedule are being observed with respect to the house, and any tenant of the house shall, on being so required in writing by the owner, furnish to him such information as he may reasonably require for the purpose of enabling him to comply with this condition.

SCHEDULE 5

SCHEDULE 6

SCHEDULE 7

1

• (1) In each financial year a local authority shall carry to the credit of the housing revenue account amounts equal to—

• (a) the income receivable by the local authority for that year from rents and feuduties in respect of houses and other property to which the account relates ;

• (b) any Exchequer contributions payable to the local authority for that year under any of the enactments mentioned in Schedule 8 to this Act, together with any Exchequer contributions payable to them under section 87(2) or 87(4) of the Housing (Scotland) Act 1950 or under section 9(2) or 9(4) of the Housing (Scotland) Act 1962 or under section 92(2), as read with section 92(10), of the Housing Act 1964 ;

• (c) any payments received by the local authority from another local authority in pursuance of any overspill agreement within the meaning of Part II of the Housing and Town Development (Scotland) Act 1957, being payments such as are mentioned in paragraph 2(g) of this Schedule ;

• (d) any contributions received by the local authority under section 101(1) of the Housing Act 1964, in so far as amounts equal to the expenditure towards which those contributions are made fall to be debited to the account.

• (2) Where any house or other property to which the account relates has been sold or otherwise disposed of, whether before or after the commencement of this Act, an amount equal to any income of the local authority arising from the investment or other use of capital money received by the authority in respect of the transaction shall, unless the Secretary of State otherwise directs as respects the whole or any part of such income, be carried to the credit of the account in like manner as if it had been income from rents.

• (3) An amount equal to the income (if any) of the local authority arising from an investment or other use of borrowed moneys in respect of which the authority are required under the following provisions of this Schedule to debit loan charges to the account shall be carried to the credit of the account in like manner as if it had been income from rents.

• (4) Where in any financial year a deficit is shown in the account, the local authority shall carry to the credit of the account, in respect of that financial year, an amount equal to the amount of the deficit.

• (5) In any financial year the local authority may carry to the credit of the account, in addition to the amounts required by the foregoing provisions of this Schedule, such further amounts, if any, as they may think fit.

2

In each financial year a local authority shall debit to the housing revenue account amounts equal to—

• (a) the loan charges which the local authority are liable to pay for that year in respect of moneys borrowed by a local authority for the purpose of—

• (i) the provision by them after 12th February 1919 of housing accommodation under Part III of the Housing (Scotland) Act 1925, or under any enactment relating to the provision of housing accommodation for the working classes repealed by that Act, or under Part V of the Housing (Scotland) Act 1950, or under Part VII of the principal Act; or

• (ii) the execution of works in respect of which the Secretary of State has undertaken to make an Exchequer contribution under section 35 of the Housing (Scotland) Act 1935 ; or

• (iii) the provision or improvement by them of dwellings in accordance with improvement proposals approved by the Secretary of State under section 2 of the Housing (Scotland) Act 1949 or under section 105 of the said Act of 1950 or under section 13 of this Act; or

• (iv) the purchase of any houses approved by the Secretary of State for the purposes of section 4 of the Housing (Repairs and Rents) (Scotland) Act 1954 or section 19 of this Act, or the carrying out of works on such houses ;

• (b) the taxes, feuduties, rents and other charges which the local authority are liable to pay for that year in respect of houses and other property to which the account relates ;

• (c) the expenditure incurred by the local authority for that year in respect of the supervision and management of houses and other property to which the account relates ;

• (d) the arrears of rent which have been written off in that year as irrecoverable;

• (e) any amounts required to be credited by the local authority for that year to a housing repairs account kept in accordance with section 61 of this Act;

• (f) if the local authority keep a housing equalisation account in accordance with section 62 of this Act, any amounts required to be credited by the authority for that year to that account;

• (g) any payments made by the local authority to another local authority or a development corporation in pursuance of any overspill agreement within the meaning of Part II of the Housing and Town Development (Scotland) Act 1957, being payments towards expenditure which, if it had been incurred by the first-mentioned authority, would have been debited by them to their housing revenue account in pursuance of this paragraph.

3

Where it appears to the Secretary of State that amounts in respect of any incomings or outgoings other than those mentioned in the foregoing provisions of this Schedule ought properly to be credited or debited to a housing revenue account, or that amounts in respect of any of the incomings and outgoings mentioned in the foregoing provisions of this Schedule which ought properly to have been credited or debited to the account have not been so credited or debited, or that any amounts have been improperly credited or debited to the account, he may, after consultation with the local authority, give directions for the appropriate credits or debits to be made or for the rectification of the account, as the case may require:

4

Any surplus shown in a housing revenue account at the end of a financial year may be applied by the local authority, in whole or in part, in making good to the general rate fund any amounts credited to the account under paragraph 1(4) or 1(5) of this Schedule in any of the nine last preceding financial years, and, so far as not so applied, shall be carried forward in the account to the next financial year.

5

References in this Schedule to houses and other property to which the housing revenue account of a local authority relates shall be construed as references to houses, buildings, land and dwellings in respect of which the authority is required by section 60 of this Act to keep the account.

SCHEDULE 8

SCHEDULE 9

1

In section 74(4), for the words " section 19 of the House Purchase and Housing Act 1959 or section 111 of the Housing (Scotland) Act 1950" there shall be substituted the words " section 40 or section 27 of the Housing (Financial Provisions) (Scotland) Act 1968 ".

2

In section 74(8), for the words " section 75(3)(c) of the Housing (Scotland) Act 1950 " there shall be substituted the words " section 49(3)(c) of the Housing (Financial Provisions) (Scotland) Act 1968 ".

3

In section 79(2), for the words "section 19 of the House Purchase and Housing Act 1959 " there shall be substituted the words " section 40 of the Housing (Financial Provisions) (Scotland) Act 1968 ".

4

In section 86(7), for the words " section 19 of the House Purchase and Housing Act 1959 " there shall be substituted the words " section 39 of the Housing (Financial Provisions) (Scotland) Act 1968 ", and the words " transitional and other supplemental provisions, including " shall be omitted.

5

In section 145(6), for the words " Part I of Schedule 6 to the Housing (Scotland) Act 1950 " there shall be substituted the words " Schedule 8 to the Housing (Financial Provisions) (Scotland) Act 1968 ".

6

In section 146, for the words "section 137 of the Housing (Scotland) Act 1950 " there shall be substituted the words " section 60 of the Housing (Financial Provisions) (Scotland) Act 1968 ".

7

In section 151(1), for the words " section 137 of the Housing (Scotland) Act 1950" there shall be substituted the words " section 60 of the Housing (Financial Provisions) (Scotland) Act 1968 ".

8

In section 175(1) for the words " section 23(1) of the Housing and Town Development (Scotland) Act 1957 " there shall be substituted the words " section 1(3) of the Housing (Financial Provisions) (Scotland) Act 1968 ", and for the words " section 18(1)(b) of the Housing (Scotland) Act 1962" there shall be substituted the words " section 25(1)(b) of the Housing (Financial Provisions) (Scotland) Act 1968 ".

9

In section 208(1), the definition of " Exchequer contribution " shall be omitted.

10

In section 210(2), for the words " the references in sections 2, 177(1), 178(b), 183(1)(a), 193(1), 196(1) and 197(1) of this Act" there shall be substituted the following words—

the references in sections 1, 2, 177(1), 178(b), 183(1)(a), 191. 192(4) and (6), 193(1), 196(1), 197(1), 200(1), 201, 202, 205 and 206 of this Act

;

and for the words " section 165(1) of this Act" there shall be substituted the words " sections 165(1) and 200(2) of this Act ".

11

In Schedule 9, the amendment of sections 137 and 138 of the Housing (Scotland) Act 1950 and the amendment of section 29(2) of the House Purchase and Housing Act 1959 shall be omitted.

SCHEDULE 10