Abstract
Housing in Britain has always been a very decentralized service. Housing associations were launched as an alternative and more directly manageable agency of housing policy and, most crucially, public expenditure cuts became a reality. Housing rents and subsidies reveal the greatest and most crucial erosion of local autonomy. To understand the recent shift that has occurred in the relationship between central and local government over housing finance we need to consider the housing subsidies and rent arrangements introduced in the 1980 Act, the way in which these have been operated and the interaction of these with the block grant system. Controls on rents and subsidies are only part of the financial mechanisms open to central government: in addition, there is the system of control of borrowing and capital expenditure. Apart from its control of overall local authority capital expenditure, the Department of the Environment also operates a system of individual project control.
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