HC Deb 19 February 1952 vol 496 cc25-7
31. Mr. Norman Smith

asked the Minister of Housing and Local Government if he will make a statement about the housing subsidy.

42. Mr. A. Blenkinsop

asked the Minister of Housing and Local Government whether he is now in a position to make a statement on the progress of negotiations with local authorities on the revision of housing subsidies; and if he will give an assurance that full regard is being paid to the effect of the further increase in the Public Works Loan Board rate of interest.

43. Mr. Douglas Jay

asked the Minister of Housing and Local Government whether, in the light of the further increase in the rate of interest for loans from the Public Works Loan Board, and its effect on the rents of council houses, he will make a statement arising out of the discussions on housing subsidies between his Department and the local authorities.

Mr. H. Macmillan

I would refer the hon. Members to the reply given on 29th January, 1952, to the Member for Gravesend (Sir R. Acland) and others. I hope to meet the representatives of the local authorities on Thursday.

Mr. Smith

Will the Minister bear in mind that there is grave anxiety among the local authorities lest any increase in the subsidy should not be sufficient to offset the extra cost of borrowing due to the increase in the rate of interest from 3 per cent. to 4½ per cent., which will add 5s. 10d. a week to the cost of houses in Nottingham and elsewhere?

Mr. Macmillan

Yes, but if that be their anxiety I can allay it immediately. It will be sufficient for that purpose, but I thought that by tradition it would be discourteous to make any announcement in the House until I have had the normal discussions with representatives of the local authorities, which take place this week.

Mr. Blenkinsop

Are we to understand that the increase in the housing subsidy is guaranteed to be sufficient to cover the whole increased cost to local housing authorities of the new rate of interest?

Mr. Macmillan

Yes, Sir.

Mr. Jay

The Minister has made a very important statement in answer to a supplementary question. Can we be assured that it applies to all housing schemes throughout the country and that it also applies to Scotland?

Mr. Macmillan

I have answered perfectly straightforwardly the question put to me. The answer is, "Yes, Sir."

Mr. Smith

Is the Minister saying that he will take money out of the ratepayers' pockets to put it into the pockets of moneylenders?

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