HC Deb 25 April 1967 vol 745 cc1302-3
12. Mr. Biffen

asked the Minister of Housing and Local Government if, in furtherance of the Government's prices and incomes policy, he proposes to invite local authorities to inform him of increases in council house rentals.

Mr. Greenwood

Parliament has given local authorities responsibility for fixing the rents of their houses and I have no power to intervene. Comprehensive information is published, however, annually by the Institute of Municipal Treasurers and Accountants.

Mr. Biffen

Does not the right hon. Gentleman appreciate that under the White Paper which is to govern the next stage of the Government's prices and incomes policy there are no compulsory powers enabling the Government to intervene concerning the prices of manufactured goods? None the less, the Government wish for notification. Why do not they place council house rents in the same category?

Mr. Greenwood

The point is that local authorities have to balance their housing revenue accounts under the Statutes passed by this House. I have every reason to believe that we can rely on them not to raise rents unless they are convinced that it is essential.

Mr. Lubbock

Has not there been inequity in this matter during the period of freeze and restraint, as between the tenants of local authorities and tenants of private landlords, in that local authorities have been free to raise their rents whereas private landlords have had to maintain their rents at the existing levels, whether controlled or regulated? The tenants of their properties have had an advantage as compared with council house tenants.

Mr. Greenwood

The hon. Gentleman is overlooking the fact that the great majority of local authorities keep their rents steady.

13. Mr. Spriggs

asked the Minister of Housing and Local Government what incentive he provides local authorities with to avoid steep rent increases; what has been the response to his appeal to defer rent increases; what other action he intends to take to assist local authorities to balance their housing revenue accounts; and if he will make a statement.

Mr. Greenwood

Local authorities generally have given support to the standstill and severe restraint since 20th July, 1966, within the limits imposed by their statutory duties. It is the purpose of the bigger subsidies provided for in the Housing Subsidies Bill to give greater assistance to local authorities towards meeting housing costs.

Mr. Spriggs

I thank my right hon. Friend for that reply, but is he not aware that one of the biggest single factors in the cost of housing our people, especially for the local housing authorities, is the high interest rates charged for money borrowed to build and maintain those houses? When will he and his colleagues do something about these interest rates to help the people now?

Mr. Greenwood

I appreciate what my hon. Friend has said and the concern he feels, but the Housing Subsidies Bill which is now before Parliament will have exactly the effect he wants. That is, it will give local authorities the opportunity of borrowing money at a fixed 4 per cent.