HC Deb 03 July 1974 vol 876 cc388-9
31. Mr. Michael Spicer

asked the Secretary of State for the Environment if, as part of his review of local government finance, he will consider restoring the domestic rate relief in non-metropolitan areas to the level proposed by the last Government.

42. Mr. Allason

asked the Secretary of State for the Environment what would be the cost of restoring the cuts that he made to certain areas in the domestic element of the rate support grant for 1974–75.

Mr. Crosland

I made no cut in the total domestic rate relief proposed by the last administration. I did, however, redistribute some part of it in favour of the inner cities and against other areas. If I were simply to reverse the redistribution the cost would of course be zero since gains and losses would cancel out. If I were to make good the losses to the rural areas while maintaining the gains to the inner cities, the additional cost would be some £70 million. I do not believe that it would be right or just to proceed in this way. But I am considering the many points on the rates situation raised in the debate last Thursday.

Mr. Spicer

Is the right hon. Gentleman aware that whatever the rights and wrongs of the case—and it has been coming through during Question Time today that he feels differently from us—in such constituencies as mine there is now a real danger of a mass refusal to pay the second rate? What does he intend to do about it?

Mr. Crosland

I am distressed to hear the hon. Member say that there is a mass disposition to refuse to pay the rates without adding that he has urged ratepayers not to take that action.

Mr. Tomlinson

Does my right hon. Friend agree that the proposition of the hon. Member for Worcestershire, South (Mr. Spicer) is grossly discriminatory against metropolitan boroughs, some of which have also suffered?

Mr. Crosland

I agree with my hon. Friend that most of the troubles of the hon. Member are matters for complaint to his right hon. Friend the Member for Worcester (Mr. Walker).

Mr. Allason

Does the right hon. Gentleman agree that he cannot blame the last Government because he has taken £70 million from the country districts and given it to the metropolitan districts? Will he now, as a good parliamentarian, accept the will of Parliament and restore that £70 million forthwith to the rural areas in time for the second rate demand in the autumn?

Mr. Crosland

The House knows that I have never made the slightest effort to disclaim responsibility for the change I made in the distribution of the domestic element. What I have consistently said is that the total national increase in rates was not my responsibility but was the responsibility of my predecessors. As for the £70 million, if I had that sum I cannot believe that that would be the best way to distribute it. I repeat, without any commitment, that I have pledged myself to examine all the practical suggestions made in last Thursday's debate.