HC Deb 28 June 1967 vol 749 cc493-4
16. Mr. David Steel

asked the Secretary of State for Scotland whether, in advance of the report of the Royal Commission on Local Government, he will bring forward proposals for transferring some of the rate burden to the central Exchequer.

Mr. Ross

The Government have already introduced the new rate support grant system under which the Exchequer will bear a rising percentage of total local expenditure year by year, and a progressively increasing part of this central assistance is earmarked for domestic ratepayers.

Mr. Steel

Does not the Secretary of State think that there is further scope for ending the tremendous burden on rates, particularly in the matter of teachers' salaries? Would it not be preferable to transfer more of that from the rate burden to the central Exchequer?

Mr. Ross

We went into this when we issued our White Paper on local government finance. We could not accept the justice of it without considering the question of responsibility. In other words, we should not make a change based purely on finances without having regard to responsibility. The better time to consider the viability of areas and changes in financing local government will be after we receive the Royal Commission's Report.

Mr. Galbraith

Would not a very simple way to help local ratepayers be to adjust local authority rents upwards which in Glasgow are costing ratepayers £7 million a year, which is 5s. in the £?

Mr. Ross

There are all sorts of ways of doing it. Some of them may create even more hardship. The hon. Gentleman should appreciate that many things are being done in this respect even by the local authorities.

Mr. Thomas Steele

Is my right hon. Friend aware that the Burgh of Dumbarton has announced a decrease in rates of 2s. 3d. in the £ because of the help and assistance of the Labour Government?

Mr. Ross

I am sure that it is not alone in recognising the generosity and beneficial effects of the present Administration.

Mr. Baker

Can the right hon. Gentleman confirm, in the light of a previous reply, that the Royal Commission for Scotland will be reporting in the autumn of next year?

Mr. Ross

It would be wrong for me to say that it will report in the autumn of next year. We can only give a general indication that it will probably be late next year or early the year after. However, it would be wrong for me to tie it down to a date.