HC Deb 18 March 1963 vol 674 cc28-30
46. Sir G. Nabarro

asked the Minister of Housing and Local Government and Minister for Welsh Affairs whether he will announce the share of the new rateable values to be borne by industry, commerce and householders, respectively; and what will be the percentage increase or decrease in each class compared to the current valuations.

The Minister of Housing and Local Government (Sir Keith Joseph)

As the Answer is long and contains a number of figures, I will, with permission, circulate it in the OFFICIAL REPORT.

Sir G. Nabarro

Having regard to all the hullabaloo there is about local rates, may I ask my right hon. Friend whether he can assure the House, within all bounds of human ingenuity, that the rate burden is now equitably spread as between industrial hereditaments, commercial hereditaments, including shops, and private dwellings, while leaving farmland derated? Has my right hon. Friend done all he possibly can to see that the burden is equitably spread over all these classes of ratepayer?

Sir K. Joseph

I think that I can honourably say, in answer to my hon. Friend, that looking at the distribution of the rate burden it is now on a common basis of current value and that therefore it does justice, subject always to the right of appeal, between industrial, commercial and domestic ratepayers. This tends, of course, to be confused with the quite different question of the effects, in different parts of the country, of the increase of rate-call to pay the ratepayer's share, as opposed to the massive taxpayer's share, of education and other urgently needed services. It is true, of course, that in some parts of the country where there is not large industry the share of the domestic ratepayer has tended for revaluation reasons, apart from rate-call reasons, to rise. But hon. Members need to be reminded that there are a number of parts of the country where industry is thick on the ground and where domestic ratepayers will be paying substantially less as their share than in the past.

Mr. Lipton

However much the right hon. Gentleman may seek to gloss over the figures, may I ask whether he does not realise that there is massive and mounting opinion growing up against the present rating system and its injustices? What is the right hon. Gentleman going to do about that?

Sir K. Joseph

The present rating system is meeting the demands of the whole country for rising local authority services to which the taxpayer is contributing an increasing share. It is therefore important to recognise that if the House wishes these services to increase it must expect that taxpayers and ratepayers between them must pay. as they are now doing.

Sir Richard Pilkington

Is my right hon. Friend in a position to say whether the Government can help those areas which are particularly badly struck by the new arrangements?

Sir K. Joseph

My hon. Friend knows that I am seeing deputations from some of these areas whenever requested, but that the Government's decision not to use the derating power, which provided for an even steeper share in the rate burden than has occurred, has been made.

Mr. MacColl

Is the right hon. Gentleman aware that nobody really knows what are the incidences of rates and that there has been no proper inquiry into the incidence of rates since before the war? Is he aware, therefore, that if the Government had carried out the recommendations which we on this side of the House made, and had been making for many years, for an inquiry into the rating system, these difficulties would not have arisen? When does the right hon. Gentleman hope to let us have the revised edition of the White Paper, which it was promised would be issued after the assessments had been published, showing the effect of the incidence of rating on different classes in different areas?

Sir K. Joseph

I hope to publish in a few weeks the figures for which the hon. Member asks. As for the first part of his supplementary question, all the figures I can gather together show that rates represent a smaller proportion of earnings than they did before the war, but this is no comfort to hon. Members in areas where the primary problem is not one of earnings but one of fixed incomes. I think that there is a problem of the trends of local authority costs to be considered, and I know that the House has the future of this very much in mind.

Following is the Answer: The first table below shows the proportion of total rateable value in England and Wales represented by each of the main classes of hereditament in the old and the new valuation lists and the percentage change between the two. The second table makes a similar comparison, but taking account of the contribution made by rate-deficiency grant at the rates payable for 1962–63 and 1963–64 respectively. In each case the old valuation lists have been taken as they stood on 1st December last and the new lists as deposited on 21st December. Crown property has yet to be revalued, and in consequence both tables considerably understate the share of rateable value on which the Crown will be making payment in lieu of rates and somewhat overstate the proportions attributable to the other classes in the new lists.
TABLE 1
Type of property Proportion of total rateable value Percentage change between (2) and (3)
In old lists In new lists
(1) (2) (3) (4)
Domestic 47.00 48.35 + 2.9
Shops 10.62 10.32 - 2.8
Other commercial 13.20 12.90 - 2.3
Industry 11.21 16.32 +45.6
Miscellaneous 13.72 10.52 -23.3
Crown 4.25 1.59 -62.6
TABLE II
Type of Property Proportion of total rateable value plus rateable value equivalent of rate-deficiency grant Percentage change between (2) and (3)
1962–63 1963–64
(1) (2) (3) (4)
Domestic 41.10 41.48 + 0.9
Shops 9.29 8.85 -4.7
Other commercial 11.54 11.06 -4.2
Industry 9.81 14.01 +42.8
Miscellaneous 12.00 9.02 -24.8
Crown 3.71 1.37 -63.1