HC Deb 07 February 1967 vol 740 cc1324-5
4. Mr. Gwilym Roberts

asked the Minister of Housing and Local Government what effects the Rate Support Grant Order will have on rates in the financial year 1967–68; and if he will take steps to prevent rate increases during this period by providing a Government rate subsidy.

The Minister of Housing and Local Government (Mr. Anthony Greenwood)

The rate support grant fixed by the Order is estimated to provide £40 million more in aid of rates in 1967–68 than would have been paid under the former system. Twenty-three million pounds of the extra grant for 1967–68 will secure for domestic ratepayers a reduction of 5d. in the rate which they would otherwise pay. The Government have already provided a subsidy and I do not have it in mind to propose any additional subsidy.

Mr. Roberts

Would my right hon. Friend agree, however, that in the main, rates will increase in the period 1967–68? Does not he think that this is highly undesirable in a period of prices and incomes standstill or restraint? Would he undertake to consider the possibility of giving a subsidy of this type to local authorities to enable them to expand services without increasing rates?

Mr. Greenwood

We are increasing subsidies on houses. The rate support grant gave an additional subsidy. I see no reason at the moment to change the legislation.

Mr. Ridsdale

While we do not want a subsidy, will the Minister recognise the need of seaside areas with a growing retired population and little industry? What the Minister said to me the last time he answered Questions was not true —that the Government grant considerably covers the local rate; it does not, especially when the county rate is taken into consideration.

Mr. Greenwood

We discussed this when the Bill was before the House, in answer to an earlier Question before Christmas. I have nothing to add to what was said on that occasion.

Mr. Rippon

Would the Minister agree that next year the average ratepayer will get the largest rate bill of his life? Will he say when the Government will give effect to their pledge to give early relief to ratepayers?

Mr. Greenwood

We have already given help to ratepayers. If there is an increase it will be less than would have been the case if we had not put on the Statute Book the Local Government Bill. It is much too early for the right hon. Gentleman to come to these conclusions. The full figures are not available, but he will have noticed already that five counties have decided not to increase their precept this year.

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