HC Deb 16 April 1975 vol 890 cc429-31
15. Mr. Skinner

asked the Secretary of State for the Environment what are the latest housing figures in the public and private sectors, respectively.

The Secretary of State for the Environment (Mr. Anthony Crosland)

Final figures of house building for February were published yesterday and are available in the Library. These show continued rises in public sector house building which increased very sharply last year, while in the private sector starts have improved markedly this year and completions show signs of picking up.

Mr. Skinner

The figures are welcome as they are on a gradually rising trend, particularly in the public sector, but does my right hon. Friend agree that one of the most inhibiting factors at present, and a factor that will continue to be inhibiting in the near future, is the astronomical cost of building each unit in the stress areas? Will he consider paying some attention, notwithstanding his right hon. Friend's announcement yesterday which will inhibit this proposal even more, to providing incentives for local authorities to carry out the Government's proposed building programme in the public sector to the extent that there will be a write-off of the loan charge debt set against each house that is built or proposed to be built by a local authority? In spite of the present difficulties, does my right hon. Friend agree that that is an idea that could add momentum in the local authority sector bearing in mind the Government's willingness and wish to get the job done?

Mr. Crosland

I am happy to consider any proposal that is made to me for encouraging local authority house building or private house building. I want to encourage both sectors. I am happy to point out that even under the present arrangements local authority starts and completions are well over one-third up on the disastrous level that we inherited a year ago.

Mr. Eyre

What range of increases in council house rents will take place as a result of the Chancellor's statement that housing subsidies will be reduced by £65 million? Further, what effect will this have on the public sector?

Mr. Crosland

I cannot give that information without notice. It is a completely different question. If the hon. Gentleman tables a Question to that effect, I shall seek to answer it.

Mr. Joseph Dean

I accept my right hon. Friend's reply, but in view of the upswing in the figures, which show a tremendous improvement on the record of the Conservative Government, will he consider keeping under review the 66 per cent. capital subsidy so as to maintain the tempo if the programme shows any sign of tailing off? That is a matter that will have to be kept under constant review if local authorities are to be encouraged further to expand their building schemes. If that approach is not adopted, the impact on rents will be rather dramatic.

Mr. Crosland

If the public sector house building programme were to show any sign of flagging in the way my hon. Friend has raised as a hypothesis, we would be willing to review our methods of subsidy.

Mr. Michael Morris

As the question refers to housing figures, will the Secretary of State tell us the latest situation as regards improvement grants? Further, will he explain why he was unable to give any incentive to builders bearing in mind the Budget Statement of his right hon. Friend the Chancellor of the Exchequer?

Mr. Crosland

There is a question on the Order Paper on the subject raised by the hon. Gentleman's first point. The answer to his second point is that at a time when private sector starts for the past three months are 30 per cent. up on the previous three months, it hardly seems that some further incentive is needed.