HC Deb 08 May 1951 vol 487 cc1736-7
14. Mr. Dryden Brook

asked the Minister of Local Government and Planning if he will take steps to abolish the 75 per cent. reduction in assessment for local rating purposes enjoyed by business establishments at the present time.

Mr. Dalton

I do not propose to amend the present law regarding de-rating.

Mr. Brook

Is my right hon. Friend aware that there is great and growing resentment in local Government circles at the inequitable incidence of local rating as between the business community and the residential people? Is my right hon. Friend further aware that there is a strong feeling that this concession to business was made in circumstances which were completely different from those ruling today?

Mr. Dalton

These matters have been discussed, and my predecessor took the view, which I take, that the balance of the argument is against reversing the derating arrangements. We do not wish at this moment to increase the costs of industry. The Exchequer Equalisation Grant, which was introduced in the Act of 1948, has done very much better for many local authorities—and I am glad that it has—than re-rating would have done for them.

Mr. Brook

Will my right hon. Friend have a look at the financial columns of any daily paper and see what the results of industry are today, and will he consider, in accordance with those results, why under de-rating arrangements the figures are 75 per cent. in the case of industry, but must be 100 per cent. in residential cases?

Mr. Dalton

It is a matter for debate, and I should be happy to take part in it on a suitable occasion.

Mr. Butcher

Would not this proposal merely increase local authority revenue at the expense of the National Exchequer in terms of Income Tax?