§ 5. Mr. Murtonasked the Minister of Housing and Local Government why he has made no reference in Circular 25/68 to provision for increased costs in the period to 31st March, 1968.
§ Mr. GreenwoodThe circular explained that the general aim should be to avoid putting up rents by more than the amount needed to cover the rise in costs in the year; but I accept that rent increases in 1968–69 may also reflect extra costs incurred before 31st March, 1968.
§ Mr. MurtonWould the right hon. Gentleman not consider amending his circular to take these costs into account 887 so that local authorities know where they are over proposed rent levels for local authority houses?
§ Mr. GreenwoodIf the hon. Gentleman will read the circular—it was No. 25/68—he will find the point covered. The point which we were making there was that increases in rents should not cover anticipated increases in subsequent years, but we fully accept that any expenses incurred before the circular was issued can be taken into account for current increases.