Rate Increases (Hansard, 24 July 1974)

§ 4. Mr. MacGregor
asked the Secretary of State for the Environment what recent representations he has received asking for retrospective relief for domestic ratepayers whose rates increased by 30 per cent. or more as a result of his action in the rate support grant order.

§ 5. Mr. Michael Morris
asked the Secretary of State for the Environment what recent representations he has received asking for help for domestic ratepayers whose rates have increased by more than 20 per cent. as a result of the rate support grant order.

§ The Secretary of State for the Environment (Mr. Anthony Crosland)
I have received a large number of representations on this subject, many of them from householders whose rate increase has been unaffected or even reduced by my decision on domestic relief. However, the scheme for rate relief this year which my right hon. Friend the Chancellor of the Exchequer announced on Monday will help all ratepayers facing increases over 20 per cent. in their total rates and water charges this year.

§ Mr. MacGregor
I welcome the measure announced by the Chancellor of the Exchequer on Monday, which many of us have been urging for months, to repair the damage caused by the action of the right hon. Gentleman's Government in March. Does the Secretary of State recognise that this is a measure of short-term relief for this year's rates only, and that as matters now stand it simply postpones the day when, next year, many ratepayers will face exceptionally large 1574 increases? Will he undertake to ensure that in next year's rate support grant formula he introduces a system of similar relief for those facing exceptionally high increases, perhaps along the lines of the variable rate grant system to which in principle the Chancellor has returned?

§ Mr. Crosland
I am happy that the hon. Gentleman is grateful for what we have done. As a result the average ratepayer in the hon. Gentleman's constituency will gain over £17. I feel that I should apologise to the Tory Party for the fact that we have shot their fox on rates. Despite that, I greatly welcome the sudden interest which the Opposition are taking in rating matters after four years of total passivity.

§ Mr. Whitehead
Is my right hon. Friend aware that many thousands of my constituents, and those of other hon. Members who have made representations on this matter will be extremely grateful for the prompt action of the Government, particularly as they intervened in a situation which initially was not of their making?

§ Mr. Crosland
I am glad to make it clear not only that the total national increase in rates this year was inherited from the Conservative Government but also that, to put it mildly, both the volume and the intensity of the representations I have had from my hon. Friends have been at least equal to any I have had from the Opposition.

§ Mr. Morris
I am sure that hon. Members on both sides of the House welcome the fact that the right hon. Gentleman has changed his mind and is now responding both to the will of Parliament and to the representations of millions of ratepayers. I assure him, however, that one fox is still running very hard for Northampton-shire and similar counties with expansion schemes and new town developments, which have made a number of well-documented representations to the right hon. Gentleman and his Department on an all-party basis but have yet to see a penny of response.

§ Mr. Crosland
I make it clear that I have not changed my mind; nor have I gone back on the change in the domestic element. That was a redistribution in favour of some places as against others. The new measure is not redistribution but 1575 a total addition to the amount of help that the Government are giving. I am aware of the problem of Northampton-shire. The hon. Gentleman or his county or both have been on two deputations to Ministers in my Department in which the point he has now expressed was put strongly and clearly.

§ Mrs. Colquhoun
Will my right hon. Friend accept that the problem of rating in the future is really that of rating reform? Will he set up his committee as quickly as possible so that we can get on with the job, away from the party political smearing that we have had, of reforming the rates system in the interests of the people?

§ Mr. Crosland
I am happy to say that my hon. Friend's constituents will gain on average £7 as a result of Monday's announcement. I entirely agree with her about the need for long-term reform of the rates, and after four years of total inactivity on the subject by the Conservative Government I hope that I shall be able to announce the names of the members and the precise terms of reference of the long-term inquiry next week.

§ Mr. Emery
It is right that we should thank the right hon. Gentleman for acceding to the resolution of the House, but he should recall that the Government and their supporters voted against it. What advice can he give to people who are now facing rate demands showing very much above a 20 per cent. increase? In some cases the rates may represent a 100 per cent. increase. What advice has the right hon. Gentleman to give to the ordinary ratepayer who finds himself in a very difficult position? How quickly will the local authorities be dealing with the matter? Will the right hon. Gentleman give an assurance that local authorities will use the money for rate relief and will not put it to any other use?

§ Mr. Crosland
This £150 million goes direct to the ratepayers and cannot be used by local authorities for any other purpose. The individual ratepayer is under no obligation to make a claim or get an application. The responsibility is entirely on the local authority to make a refund if the rates have already been paid in full and, if they have not, to levy a lower second-half instalment. The Parliamentary Labour Party voted against 1576 the resolution on 27th June because it was redolent of utter hypocrisy.

§ Mr. Tyler
The Liberals sincerely congratulate the right hon. Gentleman on acceding to the wishes of the House expressed on 27th June. If it is not considered as being perhaps a slur, will he accept the title of being a good democrat, if not a good social democrat? Does he not agree that this is one of the happiest results of minority government?
Is it the case that the assistance which is to be given will extend to increased demands for water and sewerage charges as well as to the general rates? Can the right hon. Gentleman also comment on the difficulties being faced by small traders, who are experiencing an equally high increase in their rate burden?

§ Mr. Crosland
The small traders will not benefit directly by the £150 million, although they will, I hope and think, gain indirectly from other measures announced by my right hon. Friend the Chancellor of the Exchequer. Water and sewerage charges are included in the calculation of the 20 per cent. I found the hon. Gentleman's earlier remarks rather enigmatic, although they seemed to have a generally friendly sentiment.

§ Mr. Arthur Lewis
Is my right hon. Friend aware that many of us on this side of the House who tried for four years to get an investigation into the present unfair rating system now pay a sincere tribute to him for doing in 16 weeks what the Conservative Government failed to do in four years?