HC Deb 28 April 1971 vol 816 cc406-8
14. Mr. Judd

asked the Secretary of State for the Environment whether he will publish in the OFFICIAL REPORT details of all those local authorities which have increased their rents since January, 1971, giving in each instance the percentage by which they were increased.

Mr. Channon

I have not this information since under the Rent (Control of Increases) Act, 1969, a local authority needs my right hon. Friend's agreement only if it wishes to increase rents by more than an average of 37½p a week or a maximum of 50p a week in any 52-week period.

Mr. Judd

Do not increases of up to 15 per cent., as imposed in the City of Portsmouth, cause real hardship for families on smaller incomes, particularly those who are just above the rent rebate income level? How does the Under-Secretary expect families to meet such increased expenditure when his Government say that pay increases of 15 per cent. are totally out of the question? Are not increases of 15 per cent. in rents directly inflationary because people cannot avoid the expenditure and will obviously push for increased pay? How does the Under-Secretary reconcile this with the Government's attitude to inflation?

Mr. Channon

The present powers under which rents are raised require increases to be considered by the Government only if rents are raised by the amounts which I have already stated. We intend to move gradually to a system of fair rents and, what will be extremely important, a national rent rebate scheme for all those in need.

Mr. Evelyn King

Does my hon. Friend accept that rents should reach their economic level as soon as possible, and that if there are cases of hardship, it is the function of the welfare authorities to deal with them, and that his Department will offer no indiscriminate subsidies to rich and poor, whether on behalf of private landlords or of local authorities?

Mr. Channon

It is the Government's policy to proceed gradually to a system of fair rents all over the country, with help given to those in need. Indeed, the Government's policy is to direct subsidies to those people and those areas most in need.

Mr. Crosland

Does that statement mean that the Rent (Control of Increases) Act, 1969, is not to be renewed when it expires and that the Government will exercise no control over rents in the public sector?

Mr. Channon

On the contrary, as I have said repeatedly in answer to Questions, my right hon. Friend has already made it clear that we intend to proceed with a system of fair rents all over the country, with a national rent rebate scheme.

Mr. Crosland

That does not answer the question. Economic rents were mentioned by the Minister. As we know from the Report of the National Board for Prices and Incomes, those are not the same as fair rents. If a council were to raise rents to a level above fair rents as defined by the Government, would the Government have no control over those increases?

Mr. Channon

In that unlikely event, especially as local authorities are bound by their statutory obligations to charge reasonable rents—

Mr. Freeson

No.

Mr. Channon

They most certainly are. The hon. Gentleman seems to have forgotten what little he learned at the Ministry of Housing. In that unlikely event, if any rents were charged which were above the fair rent level they would have to come down.

Mr. Denis Howell

Can we look forward to the Minister's answering some questions in the House in a less neurotic state than he appears to be in? [Interruption.] I am able to recognise a neurosis when I see one in front of me. Will the Minister kindly answer the question which has been put to him. Is it intended that the Government should have no legislative power to limit an increase in rent in any one year? If not, is not that absolutely inflationary?

Mr. Channon

We all know that football referees are getting into a lot of trouble at the moment, and the hon. Gentleman is no exception to the rule. We have already made it perfectly clear—that the hon. Gentleman has not been listening—that we intend to introduce legislation that will require all local authorities to charge fair rents and that there will be a national rent rebate scheme.