HC Deb 22 July 1965 vol 716 cc1823-5
32. Mr. Edward M. Taylor

asked the First Secretary of State and Secretary of State for Economic Affairs to what extent retail prices are influenced by local rates levied on manufacturers, wholesalers and retailers; and if he will make a statement.

Mr. George Brown

I cannot give a precise answer, but the effect is likely to be very small.

Mr. Taylor

Will not the right hon. Gentleman agree that rates are becoming an ever-increasing percentage of total costs and, therefore, of prices? As his Government's slender majority stems largely from a specific pledge to reduce the rate burden, does not the right hon. Gentleman, as the Minister responsible for prices, consider that he ought to exert pressure on his right hon. Friends and try to redeem that pledge?

Mr. Brown

The Government's adequate majority stems from a number of things and will be sustained not least by the obvious incompetence of the Opposition. On the Question actually on the Order Paper, I repeat what I said, that we think that the effect is probably a very small one.

Sir C. Osborne

Three per cent.

Mr. Gresham Cooke

Will the right hon. Gentleman take it from me that it has been one of the bigger factors in 1965 in the 4½ per cent. increase in prices which we have had since his Government came in? Will the right hon. Gentleman talk to his right hon. Friend the Minister of Housing and Local Government to see whether a new formula can be arranged to transfer some of the rate burden to the central Exchequer?

Mr. Brown

The hon. Gentleman will have seen the very good speech on this very subject which my right hon. Friend made at Hove the other night. On his other point, there is very little I would take from him, and certainly not that.

Mr. Hamling

Is my right hon. Friend aware that the recent report on rates blamed the previous Government for the big increase?

Mr. Brown

Clearly, all reports on all our problems can blame only the previous Government.

Mr. William Clark

Will the right hon. Gentleman now answer the question about rates put by my hon. Friend the Member for Glasgow, Cathcart (Mr. Edward M. Taylor)? My hon. Friend reminded the right hon. Gentleman that his Government secured their narrow majority when they came in on a promise, among other things, to reduce rates. Do they intend to reduce rates, or is this to be another of their many broken promises?

Mr. Brown

I cannot repeat every answer three times. If the hon. Gentleman looks at the OFFICIAL REPORT of what I said he will see it all there.