Local authorities are being given the freedom to spend money accumulated from the sale of council houses over the past 7 years. Housing Minister Hilary Armstrong stressed that the Government intends the new money to be used to meet local needs and priorities.Currently local authorities must set aside 75% of receipts from council house sales and this has produced a cash mountain of £5b. Legislation is being introduced to allow these funds to be released progressively. £174m will be available in the current year and £610m in 1998/99.

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