HC Deb 16 February 1972 vol 831 cc416-7
41. Mr. Judd

asked the Secretary of State for the Environment what communications he has received from the Portsmouth City Council concerning the financing of local government in the city; what reply he has sent; and whether he will make a statement.

Mr. Graham Page

The council applied, in November last, for an increased allocation for locally determined capital expenditure in 1972–73. It was notified on 21st December that an increase of £300,000 would be made.

Mr. Judd

I thank the hon. Gentleman for that reply. Would he agree that certain older urban areas and cities, such as Portsmouth, are confronted with acute difficulties in maintaining essential services, let alone improving them, without placing heavy financial burdens on those with limited or small incomes? Does he agree that the time has come for a far-reaching reform of the whole rating system in the cause of social justice?

Mr. Page

We shall certainly consider the reform of local government finance when we have the full representations on the Government's Green Paper. On the whole, I think Portsmouth has not done too badly with the £300,000 extra which I mentioned and in its large project schemes it has had another £300.000 for 1971–72 and £615,000 for 1972–73.

Mr. Freeson

Arising from the concern of my hon. Friend the Member for Portsmouth, West (Mr. Judd) about the older inner city areas, does not the hon. Gentleman agree that it would be wrong to abolish the concept of the urban aid programme, which has been hinted at in the Government's Green Paper on Local Government Finance?

Mr. Page

There was no hint of that there. As to rate support grant for which it has been applied, Portsmouth will get another £½ million increase in the rate support grant next year.