HC Deb 18 April 1929 vol 227 cc388-90
30. Mr. WELLOCK

asked the Minister of Health whether he has received a communication from the Oldbury Urban District Council with respect to the compounding of rates under the Rating and Valuation Act, 1925; whether he is aware that, owing to the reduction of the discount in the case of compounded rents, the rents of a large number of working-class houses in the Midlands will be raised by as much as 9d. per week, and in the case of council houses whose assessments have been increased by as much as 1s. per week; and whether, in view of the hardship caused, he will consider modifying this part of the Act?

Mr. CHAMBERLAIN

I have received the communication to which the hon. Member refers, though that communication does not specify the amounts of the increases as stated by the hon. Member, which I have had no opportunity of verifying. Compounding allowances, which are intended to cover the cost of collection and risk of loss to owners, in cases where they are rated in lieu of occupiers, were fixed by the Rating and Valuation Act, 1925, at a figure determined after consultation with the representative associations of local authorities. The amending Act of 1928 authorised the payment of increased allowances with a view to avoiding material increases of inclusive rentals. I would, however, remind the hon. Member that the rate charge falling to be borne in the form of inclusive rents by the tenants of rate-compounded houses depends upon a number of factors, of which the scale of the compounding allowance is only one, and which are for the most part within the control of the local authorities. Where the compounding allowances paid in the past, at the expense of the general body of ratepayers, have been unduly high, the reduction of those allowances, coupled with any increase of the assessments, may result in some unavoidable increase of inclusive rentals. The level of assessment for the properties in question is a matter primarily within the discretion of the local authorities, and I could not contemplate the introduction of further amending legislation to meet these exceptional cases which would have the effect of perpetuating the payment of unjustifiable allowances to owners.

Lieut.-Commander KENWORTHY

Has the right hon. Gentleman been made aware that no fewer than 15,000 householders in Hull alone are affected adversely and that the Corporation is quite helpless in the matter owing to a legal decision?

Mr. CHAMBERLAIN

I am not aware of those circumstances.

Lieut.-Commander KENWORTHY

Why does the right hon. Gentleman refuse to receive our deputation on the matter?

Mr. CHAMBERLAIN

I have already explained to the Council of the Corporation of Hull, who know what the situation is, and there is no further object in receiving a deputation when they know all the circumstances and know exactly what I can and what I cannot do.

Lieut.-Commander KENWORTHY

Is the right hon. Gentleman aware that since he communicated with them, the Council has unanimously passed a resolution regretting that communication, and especially the Minister's unwillingness to receive a deputation from a large body of taxpayers?