§ 66. Mr. J. R. Bevins
asked the Minister of Health if he is aware that the principle on which equalisation grants to local authorities are based is inequitable to certain cities such as Liverpool. and that the grants payable are calculated in a way that encourages extravagance; and if he is prepared to reconsider the principle on which the grants are based.
§ Mr. Bevan
I cannot accept these allegations, but in any event the Act provides for an investigation into the working of the grant as soon as the new valuation lists come into force.
§ Mr. Bevins
Is the right hon. Gentleman aware that Liverpool, which forms part of a development area, receives no equalisation grant, whereas cities which do not, like Birmingham, receive a substantial grant; and that, in the case of those authorities who do get grants, the grant is related to the rate of expenditure?
§ Mr. Bevan
These grants were related quite definitely to the reteable value per head of the. population. If the hon. and gallant Gentleman's city did not.attract a grant under that basis, it is obviously because its rateable value is higher than the average.