§ 40. Mr. Skinnerasked the Secretary of State for the Environment what estimate he has made of the percentage increase in rates for 1971–72, on the basis of the initial batch of local authority estimates.
§ Mr. Graham PageNone, Sir. A great many rating authorities have still to make their decisions.
§ Mr. SkinnerIs the Minister aware that there has already been a record number of highest-ever rate increases announced, significantly in the same year as that in which the Government have halved the domestic element of the rate support grant? Will the hon. Gentleman compliment his Tory colleagues in Tory county councils on their sympathetic action in breaking election pledges?
§ Mr. PageLocal authorities are faced with substantial increases in wages and other costs, part of which will inevitably fall on the ratepayer, but central Government grants will cover 57½ per cent. of the increase and the domestic ratepayer will be further protected by a 2.8d. increase in domestic rate relief.
§ Mr. John SilkinIn view of the Government's change of policy on the domestic rate element and rate support grant, would he not accept the estimate 1833 made by the Financial Times that the average increase in domestic rates would be between 12. per cent. and 15 per cent. in 1971–72? Would he not regard that as the deepest and most disastrous form of inflation?
§ Mr. PageThis is a purely tentative forecast and there is insufficient information as yet to support it.