§ Mr. Callaghan
The Milner Holland Report has emphasised that non-profit-making housing associations could make a greater contribution than they do at present both to the building of new houses and to the improvement and management of old houses in London. It has also pointed out that they labour under certain tax disabilities. I think it right to encourage these associations whose purpose is to provide houses to let at reasonable rents. The Finance Bill will accordingly include a provision giving power to the Housing Ministers to repay to these associations the amounts of Income Tax and Profits Tax for which they are liable. This 293 power will cover also the repayment of any liabilities they may have for Corporation Tax. The cost in 1965–66 may be about £1 million, although it will rise substantially if, as I hope, the number of houses built by such associations grows rapidly in future years. A Financial Resolution will be required.