HC Deb 25 October 1967 vol 751 cc1710-1
15. Mr. Edward M. Taylor

asked the Secretary of State for Scotland what percentage increase has taken place in the total amount raised in local rates by Scottish local authorities in the current financial year compared with 1966–67; and what increase took place in each of the previous three years.

The Minister of State, Scottish Office (Dr. J. Dickson Mabon)

I cannot yet give a precise figure for the current year, but on my present information the increase is likely to be of the order of 2.5 per cent. The latest adjusted figures for earlier years show increases of 7.5 per cent. in 1964–65, 9 per cent. in 1965–66 and provisionally 17 per cent. in 1966–67.

Mr. Taylor

I hope that the Minister's optimistic forecast will prove correct, but is he aware that many old-established businesses in the major cities are being forced to close down because of their experience of the exorbitant high rate burden? Has he any plans to alleviate the problems facing commerce and industry in our cities?

Dr. Mabon

My estimate is not a prophecy; it is an estimate based on returns from authorities with 85 per cent. of the aggregate Scottish rateable value. This estimate is based on the application of the first year of the new Act—a singularly successful year in terms of the general rate increase that we have experienced over the last 20 years regularly under both parties. With reference to the supplementary question which applies only to Glasgow, this is a matter which my right hon. Friend the Secretary of State is actively considering in the light of representations that he has received.

Mr. Manuel

Is my hon. Friend aware that industry in Scotland is being helped by the Government and domestic ratepayers, to the tune of 50 per cent.—industry having been derated to that extent?

Dr. Mabon

That is another question, which I would not like to go into now.