HC Deb 17 December 1968 vol 775 cc1153-5
18. Mr. Boyd-Carpenter

asked the Minister of Housing and Local Government whether, in the light of the Government's new proposals to restrict consumer expenditure, he will reconsider his decision to impose the present cuts in rents charged by local authorities.

22. Mr. Grant

asked the Minister of Housing and Local Government to what extent he takes into account increases in general rates when exercising his powers under the Prices and Incomes Act.

37. Mr. Arthur Jones

asked the Minister of Housing and Local Government if he will suspend the operation of his power under Section 10 of the Prices and Incomes Act, 1968, under which local authorities need prior approval for rent increases, in order to assist local authorities to minimise rate increases in 1969.

53. Mr. Roebuck

asked the Minister of Housing and Local Government to what extent, when considering proposals from local authorities for reducing increases in council house rents, he takes into account the local authority rate contributions to such rents.

Mr. K. Robinson

This temporary control is an important element in the Government's prices and incomes policy and it would be quite wrong to abandon it. In considering local authorities' proposals, I expect them to raise their rate contributions only where the rent increases would otherwise exceed the recommended limits; but at the present time I consider it right to reject pro- posals for rent increases which involve a substantial cut in a rate contribution normally made by the authority concerned.

Mr. Boyd-Carpenter

In view of that Answer, is not the right hon. Gentleman, by restraining local authorities from raising rents to come somewhere near an economic level of those of their tenants on differential schemes who can afford it, working dead against the Chancellor of the Exchequer's policy of deliberately raising prices to restrict consumption? Both cannot be right.

Mr. Robinson

No. Reduction in rent increases is important to the tenants concerned. The total amount concerned is not significant in relation to total consumer demand, but a restraint in rent increases is important to the prices and incomes policy because housing is a necessity.

Mr. Grant

Is the Minister aware that as a result of his directive in Harrow there will be a substantially extra burden on the ratepayers there? Is his intention that the rates should go up, or to put off the evil day until he is ousted from office?

Mr. Robinson

I am aware that my right hon. Friend's decisions in the case of Harrow have resulted in considerable easement of the burden on tenants. All these considerations were taken into account when the matter was considered, and they have been discussed with the council.

Mr. Roebuck

Will my right hon. Friend confirm that in a number of local authorities, such as Harrow, council tenants pay an unfair proportion of the cost of running old folks home and places like that? Will he also confirm that council tenants are ratepayers?

Mr. Robinson

Yes. I should think that the latter part of my hon. Friend's supplementary question was self-evident. He will be interested to know that in Harrow the direction was that the rent increase average should be reduced from 20s. to 7s. 6d. a week and that the highest individual increase should be reduced from 31s. to 11s. 7d. a week.

Mr. Speaker

Mr. Molloy.

Mr. Grant

On a point of order. In ciew of the unsatisfactory nature of the Minister's reply, I give notice that I shall seek to raise the matter on the Adjournment.

Mr. Speaker

Order. I had already called Mr. Molloy.

Mr. Molloy

On the general question of rents, would my right hon. Friend look at the existing legislation which allows Tory councils to cheat by including in the housing revenue account many aspects of housing estate administration, such as lighting, roads and footpaths, which should be on the general rate account but are included and put on council house tenant's rents?

Mr. Robinson

My hon. Friend may like to know that we are currently discussing the housing revenue account with the local authority associations.

Mr. Graham Page

Will the right hon. Gentleman say definitely whether it is Government policy to keep down the rents of council tenants and make the ratepayers pay?

Mr. Robinson

The Government's policy during the continuation of this phase of the Price and Incomes Act is to mitigate the increases in council rents in the interests of the policy.

Mr. Grant

On a point of order. As the Minister's answer is still unsatisfactory, I give notice that I shall seek to raise the matter on the Adjournment.

Mr. Roebuck

On a point of order. In view of the satisfactory nature of my right hon. Friend's reply, I look forward to the debate with interest.