HC Deb 20 June 1973 vol 858 cc672-3
20. Mr. Tebbit

asked the Secretary of State for the Environment to what extent his letters to local authorities requesting them to reconsider their rate demands have led to reductions in those demands.

Mr. Graham Page

One hundred and seventy local authorities in England effected reductions amounting to £11.3 million. I am informed by my right hon. and learned Friend the Secretary of State for Wales that the inclusion of Wales in this answer would make the figures 210 local authorities and reductions of £13.2 million.

Mr. Tebbit

I am glad to hear that at least some local authorities have heeded my right hon. Friend's advice. However, is he satisfied that he has sufficient staff in his Department to consider whether rate demands are unreasonable? What will he do if local authorities continue to make extravagant and unjustified demands?

Mr. Page

We have power to monitor the rate poundages and to make suggestions to local authorities when we think reductions might be made. Of the 1,400 authorities that were asked to review their proposals, in 480 cases the invitation suggested specific amounts. It is the local authority's responsibility to fix the rate poundage. There is no question of ordering local authorities what the rate poundage should be. The staff in my Department are able to deal with this matter, as I think is shown by the fact that they were able to suggest specific reductions in 480 cases.

Mr. Pavitt

In monitoring this matter, will the right hon. Gentleman's Department take two things into consideration—first, that because of inflation the expenditure of local authorities that should be made this year on necessary works will be much less if it is deferred and, secondly, because of a slight aberration by the electorate in electing Conservative-controlled councils that have delayed doing things excessive expenditure has been incurred in some cases this year to make up for the backlog?

Mr. Page

I do not agree with the latter part of the hon. Gentleman's supplementary question. Perhaps he would remind me of the first part.

Mr. Pavitt

Will the right hon. Gentleman bear in mind that inflation means that money should be spent on necessary work now rather than next year?

Mr. Page

The question of inflation was discussed fully with all those authorities that were asked to reduce the amount of rate poundage. Views as to what should be allowed for inflation differ between local authorities. This has been one of the considerations in the monitoring that we have been doing.

Mr. Loughlin

I appreciate that it is possible to ask local authorities to reduce their rates, but is it not the case that most local authorities, in consequence of Government policy, have had to impose large increases on most ratepayers? The right hon. Gentleman talks about advising local authorities to reduce rates. Is he aware that his Department advised one of my local authorities to reduce rates by cutting out a proposal for concessionary fares to old-age pensioners?

Mr. Page

If the hon. Gentleman writes to me about the case, I shall look into it. Generally speaking, there has been co-operation between central Government and local government in considering what should be the right figures based on the figures agreed between local authority associations and my Department in the course of the last rate support grant negotiations.