§ 26. Mr. Collinsasked the Minister of Housing and Local Government if he is aware that the obligation placed on certain local authorities, who purchase land for housing, to repay to the Central Land Board moneys expended by the Board in extinguishing claims for loss of development value, plus commuted interest retrospective to July, 1948, irrespective of the date of acquisition by the local authority, adds unduly and unfairly to the cost of housing and to rents; and if he will reconsider the matter.
§ Mr. DeedesThe answer to both parts of the Question is "No, Sir." This land was bought at existing use value. Now that local authorities no longer have to pay a development charge to the Central Land Board, it is only fair that they should meet these payments which are part of the cost of acquiring the land.
§ Mr. CollinsIs the Minister aware that this decision bears extremely hardly on many London boroughs? Is he further aware that in the Borough of Finsbury the extra money that has had to be paid for land after the flats have been built 16 amounts to £900 a flat, which is 16s. a week? Does the Minister not agree that that is both inflationary and has forced up the cost of living? If he agrees that it is fair to the landlord, will he not be fair to the local authorities, and try to give them some special assistance in special cases?
§ Mr. DeedesIt is not possible to legislate separately for individual authorities, but authorities who pay high prices for the land they buy benefit under the expensive sites scale.