HC Deb 28 June 1972 vol 839 cc1436-7
38. Mr. Loveridge

asked the Secretary of State for the Environment what steps the Government propose to take to reduce the rate of increase in local government expenditure, with a view to minimising rate increases.

The Under-Secretary of State for the Environment (Mr. Keith Speed)

My right hon. Friend will be discussing the rate of growth of expenditure with representatives of local authorities later this year in connection with the determination of rate support grant for 1973–74. At those discussions, full account will be taken of the need to minimise rate increases as well as of the increasing demands for education, personal social services and other local authority services, and the increased wages and other costs which authorities are having to bear.

Mr. Loveridge

Whilst I am grateful to my hon. Friend for that encouraging reply, is he aware that over the past 10 years rates as a proportion of the national income have risen from 3.9 per cent. to 4.8 per cent., which represents an almost intolerable burden on many of my constituents in Horn church, who, because they live in a largely residential area, pay even more in rates than do most other people?

Mr. Speed

I am aware that rates have risen in this way, but so also have the demands for higher quality of services and the support from central Government.

Mr. Blenkinsop

May I ask the hon. Gentleman to do nothing to discourage local authorities from going ahead with vital social developments in their areas, especially in areas of special need?

Mr. Speed

These matters will be discussed by my right hon. Friend later in the year.