HOUSE-LETTING AND RATING (SCOTLAND) BILL. (Hansard, 11 May 1920)

§ LORD STANMORE

My Lords, this short Bill has been introduced with the main purpose of removing a grievance which has grown up with the passing of the Increase of Rent and Mortgage Interest (Restrictions) Acts in regard to small dwelling-houses. Under the House Letting and Rating (Scotland) Act 1911, the owner of a small dwelling-house, which is let to a tenant, is responsible for the portion of the local rates imposed on the occupier. The theory being that he can recover the amount as part of the rent. The local rates in Scotland are struck annually, generally about six months after the beginning of the assessment year. This caused no difficulty under the Act of 1911 as the owner was able to recoup himself for a rise in rates by adjusting the rent in the latter half of the year. But under the new Acts owners are only entitled to make an addition to the "standard rent" to cover an increase in the rates for such portion of the assessment year as has still to run. The increase cannot be retrospective. The owner remains responsible to the rating authorities for the rates for the whole year, but is only entitled to collect the increase for a portion of the year.

Clause 1 is designed to remove this grievance, which is especially serious now owing to the large increase in the rates for the present year. By the provisions of this clause the increase in rates, for such portion of the assessment year, as has already run can be recovered from occupiers as arrears of rent. Clause 2 is on the lines of the Statement of Rates Act, 1919, which does not apply to Scotland, and makes provision against the exaction by owners of small houses of additions to rent beyond those legally authorised.