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Clause 5. — (Termination of Local Authorities' Obligation to Make Certain Contributions, and Power to Carry Other Sums to Credit of Housing Revenue Accounts.)

Part of Orders of the Day — Housing and Town Development (Scotland) Bill – in the House of Commons at 12:00 am on 3rd June 1957.

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Photo of Mr Jack Browne Mr Jack Browne , Glasgow Craigton 12:00 am, 3rd June 1957

The hon. Gentleman said we intend that local authorities should make no contribution equivalent to the statutory rate contribution. The facts of local authority finance on which this part of the Bill is based arc that if local authorities pool their subsidies and gradually adjust their rents, if necessary with a rent rebate scheme, and if they work towards the time when they pay no more into their housing accounts than one-third of the Exchequer subsidies—which is the equivalent of the statutory rate contribution—they can balance their housing accounts and go on building, and they can effect reductions—in some cases, substantial reductions—in the rate poundage.

This is a matter solely for the local authorities and that is the basis of the calculation upon which this Bill stands. Many local authorities remember what right hon. and hon. Gentlemen opposite tend to forget, that if the rents go up the rates will go down. It is for local authorities to decide the division of the burden to be carried between rentpayer and ratepayer.