HC Deb 18 June 1968 vol 766 cc892-3
19. Mr. Hunt

asked the Minister of Housing and Local Government what financial assistance he will offer to the Greater London Council in order to help it to meet an estimated loss of £1 million resulting from his refusal to allow the Council to proceed with its fair rents scheme.

Mr. Greenwood

None, Sir. Local authorities are not entitled to compensation from national funds for restraint on prices and incomes.

Mr. Hunt

Is the Minister aware that, as a direct result of his meddling interference, the ratepayers of Greater London are now being called upon to find an extra £4,500,000 in the course of the next two years? Is it not financial and social madness to force the G.L.C. to cut the rents of its top income tenants at the expense of the general ratepayers, many of whom are living in far less affluent conditions than some of the G.L.C. tenants?

Mr. Greenwood

As a result of what the hon. Gentleman kindly calls my "meddling interference", the average increase proposed has been reduced from 11s. 7d. to 7s. 6d. a week and the highest individual increase reduced from 22s. 6d. to 10s. I think that is well worth while. The estimated loss of revenue to the G.L.C. is equivalent to about 1½d. general purposes rate.

Mr. Wellbeloved

Would my right hon. Friend bear in mind that a lot of nonsense is being put around about rent increases in the G.L.C? Is he aware that the unfair policy being operated by the present masters across the river is involving the placing upon tenants of charges which ought to be borne by the system at large, for example the Thames-mead scheme in my constituency?

Mr. Greenwood

I do not want to comment on individual schemes, but I am entitled to point out that the G.L.C. basic subsidy per dwelling went up from £24 under the previous Administration to £173 for the cost of a £6,400 house.

Mr. Rippon

Will the Minister agree that the G.L.C. policy is entirely in accordance with the Ministry's circular and advice on rent rebate schemes?

Mr. Greenwood

I am grateful to the authority for saying that there was a great deal of wisdom in the circular that I issued.

Mr. Molloy

Is my right hon. Friend aware that the phrase in the original Question, "fair rents" scheme, has been hotly disputed by tens of thousands of Londoners?

Mr. Greenwood

The proposal for a "fair rents" scheme was turned down by the Prices and Incomes Board, so it does not arise here.