HC Deb 15 April 1969 vol 781 cc980-1
34. Mr. Silvester

asked the Minister of Housing and Local Government if he will take steps to increase the rate support grant for Greater London to offset the increased deficit imposed on its housing revenue account.

The Minister for Planning and Land (Mr. Kenneth Robinson)

No, Sir. The Greater London Council has no need to make good a deficit in the housing revenue account larger than it had previously envisaged. In any case Exchequer assistance to that account is outside the scope of the rate support grant system.

Mr. Silvester

Does the Minister agree that his refusal to allow the increases in rents of G.L.C. houses, for which it asked, will cost that council about £2 million to £3 million, which will have to be borne in addition to the subsidy already put into the housing revenue account? Does he feel no obligation to help it in that situation?

Mr. Robinson

No. The decision to reject the Greater London Council's proposed rent increases does not place an extra rate burden on London ratepayers. We suggested to the council that a greater amount of the capital expenditure on housing now met from revenue should instead be charged to loan. If this is done there is, in my view, no need for a rent increase in 1969–70, nor for a greater rate fund contribution than the council was already prepared to make.

Mr. Macdonald

Before the figures quoted by the hon. Gentleman are accepted, may I ask my right hon. Friend to cause an inquiry to be held, for example, into the apparent enormous increases in the cost of administering the G.L.C. housing account in recent years?

Mr. Robinson

I can assure my hon. Friend that all relevant factors were taken into account by my right hon. Friend in reaching this decision.

Mr. Boyd-Carpenter

Does the right hon. Gentleman realise that his first supplementary answer means that he is asking the Greater London Council to pursue financial policies which it regards as unsound, and are not London ratepayers being asked to find money to support policies which they emphatically rejected at the last council elections?

Mr. Robinson

No. The expenditure in question relates to capital works for which it would be entirely proper to spread the cost. Restricting capital met from revenue is one method for avoiding rent increases which my right hon. Friend has consistently recommended to local authorities generally.