HC Deb 21 February 1956 vol 549 cc193-5
58. Mr. Awbery

asked the Minister of Housing and Local Government if he is aware that the derating of industrial hereditaments was introduced to assist industry when it was passing through a slump; that industry is now making record profits; that the rate burden on householders is becoming excessive; and whether he will therefore hasten his consideration of the question of industrial derating.

Mr. Sandys

The question of industrial derating is a major issue of economic policy. It is being examined, together with other related problems, as part of a comprehensive review of local government finance. This will necessarily take some time.

Mr. Awbery

Is the Minister aware that all the county councils, borough councils and urban district councils are against this system of derating, and regard it as a subsidy to a flourishing industry? Will the right hon. Gentleman have regard to this when he considers reducing the subsidies?

Mr. Sandys

Yes: as I have already assured the House on an earlier occasion, in the course of the review, naturally, an opportunity will be given to the representatives of local authorities to express their opinions on this important question.

Dame Irene Ward

Would my right hon. Friend, for our information, circulate in the OFFICIAL REPORT, a statement on the position of local authorities in relation to derating after the appropriate equalisation grants have been taken into consideration? Am I not right in assuming that some local authorities would gain if derating were done away with, whereas some other local authorities would lose? Is it not very important that we should know exactly how local authorities stand in this matter?

Mr. Sandys

If my hon. Friend will put a Question on the Order Paper, I will gladly consider her suggestion.

Mr. Blenkinsop

In view of the very big changes which are taking place as a result of the present assessment, is it not essential to have a decision on this question to work in parallel with those changes?

Mr. Sandys

I do not think that it would be possible to take a decision on this major issue except as part of a review of the whole structure of local government finance, which is at present being undertaken.