§ 18. Mr. D. Jonesasked the Minister of Housing and Local Government whether he is aware that the rent of a £1,500 council house will have to be raised by some 1s. 2d. per week to cover the deficit which will arise in the housing revenue account when the proposed reduction in the rate of subsidy takes place as and from 1st April next; and what action he proposes to take to see that the local authority housing revenue is in balance.
§ Mr. H. MacmillanNo, Sir. I cannot accept the hon. Member's assumptions.
§ Mr. JonesWhy is the right hon. Gentleman so coy about giving a direct answer? Is he aware that it is estimated that when the reduced subsidies come into operation on 1st April next there will be a deficit of 1s. 2d. per week per house on all houses which cost £1,500 built after that date, and that unless he does something about it the rents will have to be increased by that figure?
§ Mr. MacmillanThe hon. Gentleman talks about reduced subsidies. As soon as the Bank rate was put up the subsidies were put up. It does not seem to be unreasonable that when the Bank rate fell there should be some reduction in subsidy.
§ Mr. JonesWill the Minister agree that the new subsidy rates will in fact reduce the income by 2s. 4d. per house per week whereas the reduced rate of interest will make up only 1s. 2d., the balance having to be met by an increase in rent?
§ Mr. MacmillanThe rent will depend upon the circumstances of each local authority, the cost of building, which varies, and the rent or rate policy which the local authority adopts.
§ 19. Mr. Sparksasked the Minister of Housing and Local Government what is now the value of the notional house upon which his standard of subsidy is based: and since what date such value has been accepted for this purpose.
§ Mr. H. MacmillanOne thousand five hundred and eighty-three pounds was taken as the latest available figure for the notional house when the local authority associations were consulted on 21st June.