HC Deb 20 February 1968 vol 759 cc205-7
8. Mr. Marks

asked the Minister of Housing and Local Government if he will send a circular recommending to local housing authorities a maximum percentage increase in any one year in the rents of individual council houses.

Mr. Greenwood

I have advised local authorities to moderate any necessary rent increases so far as practicable, to phase any unavoidable substantial increases over a reasonable period, and to limit the increase due at any one time. Any further advice must await the report of the National Board for Prices and Incomes on this subject.

Mr. Marks

I thank my right hon. Friend for that reply. Is he aware that a previous Circular from his Department mentioned a figure of 15 per cent.? Is not even this high compared with the 3½ per cent. norm for wages and other matters?

Mr. Greenwood

The 15 per cent. figure was in a different context. The difficulty about my hon. Friend's suggestion is that, if we were to have a percentage increase, the largest rents would qualify for the largest increases.

Mr. Lubbock

Is the right hon. Gentleman aware that the South Suburban Co-operative Society is demanding increases amounting to 100 per cent. in rents from certain constituents of mine? If I let him have details, will he see that this matter is also considered by the Prices and Incomes Board?

Mr. Greenwood

I do not think that can arise out of a Question about council rents.

Mr. Spriggs

Does not my right hon. Friend agree that rent increases affect the cost of living?

Mr. Greenwood

Indeed they do. That is why we referred the whole subject to the Prices and Incomes Board.

26. Mr. Winnick

asked the Minister of Housing and Local Government if he will make a statement on the progress of the proposed council rent increases which were referred to the National Board for Prices and Incomes.

Mr. Greenwood

I have no statement to make on this subject pending the Board's report.

Mr. Winnick

Can my right hon. Friend say what action he proposes to take if these outrageous Tory-controlled G.L.C. increases are allowed by the National Board for Prices and Incomes? Many council tenants are very concerned.

Mr. Greenwood

There is not very much point in referring a matter to an inquiry and then anticipating the decision that it reaches. Perhaps my hon. Friend had better put down that Question after the Board has reported.

Mr. Frederic Harris

If sensible rents are not agreed, is it not true to say that substantial increases in rates must take place?

Mr. Greenwood

If the hon. Gentleman is simply asking me to agree that there are three sources of income to the housing revenue account—Exchequer subsidy, rents and rates—the answer is yes.