HC Deb 13 May 1941 vol 371 cc1079-80
54. Sir J. Mellor

asked the Chancellor of the Exchequer whether he will consider giving financial assistance to local authorities, suffering from enemy action, in a systematic manner instead of confining help to those on the point of collapse; whether he is aware that the present policy encourages local authorities to budget for a deficit; and whether he will examine the possibility of making grants in aid of rate income, until such time as rebuilding operations are practicable, taking as the basis of Exchequer liability the rateable value of any premises which have to be permanently erased from the valuation lists?

The Parliamentary Secretary to the Ministry of Health (Miss Horsbrugh)

I have been asked to reply. Financial assistance is already being given in a systematic manner to local authorities which satisfy my right hon. Friend that owing to war-time conditions, they are unable to maintain essential services out of ordinary revenue. The reply to the second part of the Question is in the negative. If in present circumstances a local authority cannot meet their budget liabilities without levying a rate of an unreasonable amount, the present practice is for them to consult with my Department and to levy a rate which with Government assistance will enable them to meet their liabilities. The suggestion in the last part of the Question has already been brought to my right hon. Friend's notice and fully considered, but it is not acceptable to the Government because, apart from other considerations, an arrangement which differentiates in principle between loss of rate income due to physical damage by enemy action and losses attributable to evacuation, or other war conditions, would not, in the view of the Government, be justifiable.

Sir J. Mellor

In view of the reply to the second part of my Question, would the hon. Lady consider the debates which have been taking place among some local authorities as to whether they should attempt to balance their budgets or budget for a deficit? Further, is she aware that the conclusions which have been reached have been very different?

Miss Horsbrugh

Yes, Sir, and perhaps their attention will be drawn to the matter by this Question to-day. If these Councils will communicate with my right hon. Friend's Department, I think the information can be made clear to them.