§ Q3. Mr. Kaufmanasked the Prime Minister if he will make a statement with regard to the communication he sent to Alderman W. Sefton concerning the rate problems of the major cities.
§ The Prime MinisterIn reply to letters from Alderman Sefton, I have referred him to the Government's announcement of extra rate relief to domestic ratepayers most affected by revaluation and to our intention to press on with discussions about the formula for the distribution of grant to the new authorities in 1974–75. I have also told him that his proposal to introduce a new grant system before 1974 would be impracticable.
§ Mr. KaufmanWhy did the right hon. Gentleman bring the representatives of the great cities to No. 10 Downing Street on a wild goose chase to discuss the financial problems affecting the great cities when, even before that meeting took place, he had decided to do nothing to help with those financial problems, apart from the footling aid to a tiny minority of those adversely affected by the rating revaluation? Is this deception, together with higher rents, higher mortgages, higher food prices and VAT, creating the right atmosphere for phase 2?
§ The Prime MinisterThe hon. Gentleman is quite unjustified in what he has said. It is entirely opposed to what the leaders of the cities have said in their letters which they have written to me since, including Alderman Sefton, with whom I have had a very friendly correspondence. Those who will benefit from the action that we have taken, who are the ones suffering particularly from revaluation, do not take the view expressed by the hon. Gentleman.
§ Mr. CockeramWill my right hon. Friend inform Alderman Sefton that if he wishes to limit the expenditure of Liverpool Corporation he might abandon his proposal to spend another £10 million on Speke airport?
§ The Prime MinisterI specifically said to the cities, and indeed, to all the local authorities, that I would not discuss specific items with them. However, it is of importance that since the Department of the Environment took up the monitoring of local authority finances more than £10 224 million has been saved on the present rate expenditure for the forthcoming year.
§ Mr. Terry DavisIf the Prime Minister felt able to enter into correspondence with Alderman Sefton of Liverpool City Council, may I ask why he did not feel able to send a personal reply to the letter which he received from the chairman of the finance committee of Worcestershire County Council?
§ The Prime MinisterI am prepared to look into that matter. The correspondence which I have had from Alderman Sefton was on behalf of the six cities. It is obviously not possible for me personally to answer letters from all the local authorities. These matters are dealt with by the Department of the Environment. If there was a particular reason I will write to the hon. Gentleman.