HC Deb 09 May 1963 vol 677 cc649-50
16. Sir B. Janner

asked the Minister of Housing and Local Government and Minister for Welsh Affairs whether he is aware that owner-occupiers or landlords who improve their property, either by installing necessary improvements such as bathrooms, hot water, etc., or carry out essential repairs to walls, etc., are liable to pay higher rates, and that this discourages house owners from making improvements; and what action he proposes to take to reverse this trend and give more encouragement for such improvements.

Sir K. Joseph

Anything which increases rental value, increases rateable value, and improvements may, therefore, have that effect. But I have no evidence that owners are discouraged as a result and I am informed that essential repairs to the structure do not result in increased assessments.

Sir B. Janner

Would the Minister inquire into the position further and ascertain whether it is the fact, as apparently appears to be the case, that many people are dissuaded from making necessary or advisable improvements because the rates rise as soon as the improvements are carried out? Perhaps he could devise a system whereby people could be encouraged to make these improvements without having this hanging over their heads.

Sir K. Joseph

This is the same sort of discouragement, if that is the proper word, that might be expected to stop a man from wanting to earn more since he would have to pay more tax if he earned more. I do not believe that, in general, this can be a disincentive.

Mr. Elwyn Jones

Could the Minister say what is the amount of extra rates that become payable if, for instance, a bathroom is installed in a house which was previously without one, taking whatever standard of housing he wishes to illustrate the matter?

Sir K. Joseph

No, Sir. That would be a question for my hon. Friend the Financial Secretary to the Treasury.