HC Deb 10 February 1966 vol 724 cc585-6
4. Mr. Hugh Jenkins

asked the First Secretary of State and Secretary of State for Economic Affairs if he will refer proposed rent increases by local authorities to the National Board of Prices and Incomes.

19. Dr. David Kerr

asked the First Secretary of State and Secretary of State for Economic Affairs whether he will invite the National Board for Prices and Incomes to consider the inflationary effect of increases in rents for local authority housing.

31. Mr. Heller

asked the First Secretary of State and Secretary of State for Economic Affairs whether he will refer the increase in Liverpool Corporation tenants' rents by approximately 10s a week to the National Board for Prices and Incomes.

Mr. George Brown

As I indicated in my reply of 25th November to the hon. Member for Portsmouth. Langstone (Mr. Ian Lloyd), I do not propose to make a reference.

Mr. Jenkins

Does not my right hon. Friend agree that rent is a considerable part of a person's income? Does he think that increases of about 20 or 25 per cent., announced by Wandsworth Borough Council yesterday, are reconcilable with the Government's policy?

Mr. Brown

This is a very difficult problem. My right hon. Friend the Minister of Housing and Local Government has told the House that he is considering a number of representations that have been made to him about it, but he is not yet ready to make a statement.

Dr. Kerr

Is my right hon. Friend aware that the wording of my Question was slightly different? I merely asked whether he will invite the Board to consider the matter. Would not he agree that the reference of these local authority matters to the Board would be quite improper? Would he further bear in mind the views expressed by my hon. Friend the Member for Putney (Mr. Hugh Jenkins)—that these are very heavy increases which make an enormous impact on the lower income groups?

Mr. Brown

I agree fully with my hon. Friend. Of course I am aware that this is a genuine problem. But, as I have said, the Government think that it should be dealt with in a different way and my right hon. Friend the Minister of Housing and Local Government is now considering it.

Mr. Heffer

Does not my right hon. Friend agree that it is very difficult to ask industrial workers in areas such as Merseyside to keep their wage claims down to the 3½ per cent. norm if, at the same time, they are being asked to pay perhaps 10s. per week more in rent? Do not such things operate against the prices and incomes policy.

Mr. Brown

All of these things have to be taken together, for they are related. As I have said repeatedly, my right hon. Friend the Minister of Housing and Local Government is considering what can be done about this aspect, which we believe is better dealt with in a different way. I hope my hon. Friend will put out of his mind that anyone is asking the workers of Merseyside to keep claims down to the 3½ per cent. norm. We are asking all workers, wage and salary earners, and everybody else in the country to recognise that the totality of increase in everyone's incomes must be within 3½ per cent.

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