HC Deb 26 March 1968 vol 761 cc1142-5
3. Mr. Winnick

asked the Minister of Housing and Local Government what further action he is taking on the council rent increases referred to the National Board for Prices and Incomes.

48. Mr. Conlan

asked the Minister of Housing and Local Government if he will take steps to ensure that all proposed increases in the rents of local authority houses should be deferred until after the National Board for Prices and Incomes has reported on this matter.

50. Mr. Frank Allaun

asked the Minister of Housing and Local Government if he will make a statement on council rent increases, following the reference to the National Board for Prices and Incomes.

The Minister of Housing and Local Government (Mr. Anthony Greenwood)

I have no statement to make at this stage on the reference to the Board, but my hon. Friends will be aware of the Government's intention to introduce legislation to enable Ministers to direct local authorities to moderate or phase increases which the Government regard as unduly high in present circumstances.

Mr. Winnick

Do I understand from that reply that the very substantial G.L.C. rent increases will not now be allowed regardless of what the Prices and Incomes Board has said? Does my right hon. Friend agree that to allow such increases to be implemented would be wrong and highly provocative at a time of income restraint?

Mr. Greenwood

The increases are among those which have been referred to the Prices and Incomes Board. It would be quite improper for me to comment on any individual increases at this stage.

Mr. Allaun

Will my right hon. Friend adopt one effective measure to keep rents down, that is, to stop councils from removing the existing subsidy from the rates which, unfortunately, many councils which have recently come under Conservative control, such as the G.L.C., are now doing?

Mr. Greenwood

That is a matter within the jurisdiction of every local authority, but it is certainly one of the factors responsible for increasing rents more severely than would otherwise have been necessary, and I appreciate my hon. Friend's point.

Mr. Rippon

Is the Minister aware that any interference with the statutory responsibilities of local authorities will be bitterly opposed? Will he explain how he reconciles proposals to control local authority rents with the exhortation he delivered to local authorities on 15th December, asking them to keep rate increases to the minimum?

Mr. Greenwood

Any interference with the rights of local authorities must be a matter for regret, but, I am absolutely certain, more than justified, in the present exceptional circumstances. I have had discussions with local authority associations and I shall continue to have them. The right hon. and learned Gentleman is quite wrong in assuming that this action must mean an increase in rates. It may well mean a contribution from the rate subsidy in some cases, but every case will have to be judged on its merits. There are other ways of meeting increases. Local authorities may well have reserves or be able to make the kind of economies the right hon. and learned Gentleman is always urging on them.

9. Mr. Biffen

asked the Minister of Housing and Local Government when he expects to receive the report of the National Board for Prices and Incomes on council house rents.

Mr. Greenwood

I expect to receive the report before the end of April.

Mr. Biffen

Is it the intention to formulate the legislation before or after receiving the report?

Mr. Greenwood

The legislation affecting rents will be included in the prices and incomes legislation which my right hon. Friend the Secretary of State for Economic Affairs has in contemplation. But I very much hope that the information from the Board will be available to us in drafting the legislation or at any rate in deciding how we shall use the powers the legislation gives us.

Dr. Gray

When does my right hon. Friend hope that we shall have a report from the Board on the rent increases made by the County Borough of Yarmouth which he referred to the Board?

Mr. Greenwood

That was one of over 20 authorities referred to the Board at the same time as being a cross-section of local authorities throughout the country. The period of reference to the Board has been extended by six weeks at the Board's request, and I now hope that the report will be completed by 22nd April.

10. Mr. Biffen

asked the Minister of Housing and Local Government if he proposes to introduce legislation requiring councils to notify him of proposed increases in council house rents, and enabling him to standstill any proposed increase in rents.

Mr. Greenwood

The Government have announced their intention to introduce legislation enabling Ministers to direct local authorities to moderate or phase increases which the Government regard as unduly high in present circumstances. Local authorities will also be required to give early warning of proposed rent increases.

Mr. Biffen

Is the right hon. Gentleman aware that this Question gives him a unique opportunity to clear up the deplorable confusion left by the Secretary of State for Economic Affairs? In particular, can he say whether it is the Government's intention that the proposed legislation shall apply to those many instances where council house rent increases are planned from 1st April and where the rates have been calculated on a budget taking that into account?

Mr. Greenwood

I do not accept that my right hon. Friend left any confusion. As I have said, we are having discussions with the local authority associations, and exactly how the legislation will apply to the kind of case the hon. Gentleman has mentioned is one of the subjects I am having discussions about.

Mr. Murray

What view does my right hon. Friend's Ministry intend to take of councils which introduce unfair rent rebate schemes which bear no relationship to the circular sent round by the Ministry on rent rebate guidance?

Mr. Greenwood

Perhaps we can consider that interesting question in the context of the Report by the Prices and Incomes Board.