HC Deb 22 December 1919 vol 123 cc1070-1W
Major PRESCOTT

asked the Minister of Health whether he is aware that the urban district council of Tottenham has only received one tender offering to loan the council the sum of £75 in response to a widely-circulated public advertisement inviting tenders for a loan of £750,000 for housing purposes; whether he is aware that the council's housing scheme is being held up because the local authority is not able to obtain the necessary loan; and whether he will state what financial or other arrangements will be made by the Ministry with a view of securing the carrying out of the Tottenham housing scheme, the lay-out plan for which has now been approved by the London Housing Board?

Dr. ADDISON

I understand that the urban district council of Tottenham has so far been unsuccessful in obtaining money for their housing scheme, and that, in consequence, the council is unable to proceed immediately with its scheme. I hope, however, that its further efforts to secure the necessary finance by means of the proposed local bonds and otherwise will prove successful.

Mr. FINNEY

asked the Minister of Health whether his attention has been drawn to a resolution of Municipal Corporation Associations stating that, as it is anticipated local authorities will experience difficulty in borrowing in the open market all the money for defraying the cost of housing schemes, the Government should be urged to arrange to lend the requisite sums in case of necessity; and whether he will indicate the intentions of the Government respecting the same?

Dr. ADDISON

I would refer the hon. Member to the recommendations of the Goschen Committee on Housing Finance, on which Municipal Corporations were represented. The Committee recommended that the responsibility for raising money for housing purposes should remain with the local authorities. I have every hope that the proposed local bonds, for which provision has been made in the new Bill, will go a long way to help local authorities in their efforts to secure the necessary finance

Mr. T. DAVIS

asked the Minister of Health whether he will encourage subscriptions to local loan bonds for housing purposes by allowing such bonds to be free of Income Tax up to a maximum amount of £500 held by any one person, as in the case of War Savings Certificates?

Dr. ADDISON

It is not possible to allow interest on local bonds to be exempt from Income Tax. The Housing (Additional Powers) Bill, 1919, as amended, provides for payment of interest without deduction of tax at the source in the case of any holder of registered bonds up to an aggregate of £100 issued by any local authority. I am satisfied that this provision will add considerably to the popularity of the bonds.