§ 9. Mr. Frank Allaunasked the Minister of Housing and Local Government and Minister for Welsh Affairs what has been the fall in the Government-paid proportion of local authority housing costs since 1951.
§ Sir K. JosephThe proportion of local authority housing expenditure on revenue account met by Exchequer contributions was 25 per cent. in 1950–51 and 21 per cent. in 1961–62.
§ Mr. AllaunI thank the Minister for that information, but may I ask whether he is aware that, thanks to the Government's interest policies since they came to power, the raising of the interest rate from 2¾ per cent. to 5¾ per cent, on house loans has added £3,804 to the interest repayment on a £2,500 council house? In the light of that, can the Government really claim that they are doing all they can to help councils to meet the tremendous demand for new houses?
§ Sir K. JosephThe hon. Gentleman is tireless in pursuing the wrong problem. Subsidies have trebled in the last 10 years, earnings have risen, and subsidies are now being reviewed. More and more authorities, including Socialist ones, are adopting rent rebate schemes. The general result is that I have no evidence that any citizen is being precluded from occupying, with great pleasure, a local authority dwelling.
§ Mr. AllaunCan the Minister claim that the subsidies can in any way meet this tremendous increase in interest?
§ Sir K. JosephThe hon. Gentleman was disappointed with the Answer I originally gave, which showed that there was a fall of less than one-fifth in the contribution made by the present subsidy, and we are reviewing it despite all the other factors that I mentioned.
§ Mr. M. StewartIs it not the case that, whatever rent schemes local authorities have, they are always worried about the steady increase in the total amount of money they have to raise in rates? It is not much good having a tiny little interim relief Bill if the Government pursue policies which continually increase the total volume of money which councils have to raise, which is what happens if the proportion of Government help is reduced.
§ Sir K. JosephThe hon. Gentleman is widening the question. General grant and rate deficiency grant have soared, and, as I say, we are now reviewing the subsidy on housing.
Miss LeeMay I ask the Minister whether he seriously stands by his statement that any person who wants a council house can apply for one? Is not the Minister aware that although council houses are fully occupied, nevertheless there are many families who dare not apply for a council house at present because they cannot afford to pay the rental?
§ Sir K. JosephThat shows the extreme cruelty of the local authorities concerned if they do not adopt rent rebate schemes.