HC Deb 18 June 1963 vol 679 cc197-8
5. Mr. Wingfield Digby

asked the Minister of Housing and Local Government and Minister for Welsh Affairs by how much the rate deficiency grant to Dorset will be reduced as a result of revaluation.

Sir K. Joseph

The preliminary estimate for 1963–64 puts the rate of grant payable to the county council at 12.807 per cent., compared with 15.374 per cent. on the revised estimate for 1962–63. On the basis of the council's estimated expenditure for 1962–63 this represents a reduction of about £110,000.

Mr. Digby

Is my right hon. Friend aware that people in Dorset, where the householder has been most hit by revaluation, find it hard to understand why the amount of Exchequer help should be reduced in this way?

Sir K. Joseph

I do not think that that experience is general throughout Dorset, but the fact is that, compared with the national average, Dorset is relatively less in need of rate deficiency grant than it was. The rate deficiency grant nationally has risen by £16 million.

Mr. MacColl

Is the Minister aware that the other local authorities which have gained by the changes in rate deficiency grant have had their expectations dashed by the Government indicating that they will alter the rules concerning the rate deficiency grant in order to take that saving from them? Are not the Government trying to have it both ways?

Sir K. Joseph

That is another question.

Mr. Barnett

Is the Minister aware that counties like Dorset suffer particularly from the cost of services which have to be provided for inflated populations during the summer months and that this question should be borne in mind in evaluating the rate deficiency grant?

Sir K. Joseph

The constitution of the formula on which grant is based is under discussion this year.