HC Deb 20 March 1923 vol 161 cc2349-50
74. Colonel NEWMAN

asked the Chancellor of the Exchequer whether he is aware of the dissatisfaction existing outside the London area by reason of the fact that the recent revaluation of property throughout the country penalises the owners outside the London area whose properties have been assessed on rental values which include the full increases under the Rent Restrictions Acts, as compared with the owners of property in London itself who are liable for tax on valuations which include only the small increases permitted by the Rent Restriction Act, 1919; and if he will take steps so that owners of property within the London area shall be reassessed on a similar basis to those outside that area in order that the anomaly shall be removed, and that the amount which should accrue by way of taxation shall be received from London alike with the rest of the country?

Mr. BALDWIN

As the reply to this question is necessarily somewhat long, I will circulate it in the OFFICIAL REPORT.

Following is the answer:

I do not think that any real ground can be found for the dissatisfaction which is stated by my hon. Friend to exist. In England and Wales, outside the Metropolis, there has been no revaluation of property for taxation purposes since 1910, with the result that the assessments have, for some time, been gravely out of date. The revaluation now being undertaken will come into force for the year 1923–24. In the Metropolis, however, revaluations were carried through in 1915 and 1920 and, under the provisions of the Valuation (Metropolis) Act. 1869, came into force for taxation purposes for the succeeding years 1916–17 and 1921–22. I am aware that the Metropolitan valuation of 1920 did not reflect the increases of rent sanctioned by the Rent Restrictions Act of 1920, but it has to be remembered that, on the one hand, the Rent Acts up to 1919 inclusive sanctioned increases of rent in certain cases and, on the other hand, that they only governed houses not exceeding £70 annual value in the Metropolis. In these circumstances it is evident that during recent years the balance has been against the Metropolis and this disadvantage may reasonably be set against any balance that there may be in its favour during the three years 1923–24 to 1925–26, after which the next Metropolitan valuation will, in the usual course, come into force for taxation purposes.