4. Mr. Edward Taylorasked the Secretary of State for Scotland what estimate he has made of the change in local rates which will occur in the year 1974–75.
§ Mr. MillanIt is not practicable to make a useful estimate at present.
Mr. TaylorIs the hon. Gentleman aware of the serious concern expressed by local authorities yesterday following discussions with Lord Hughes? Is he further aware of their fears that there might be a savage rates rise this year? Can he make it clear—in view of the assurances given following the rents freeze that local authorities would be compensated for loss of income—that authorities will be fully compensated, otherwise we will find that instead of a rent rise in October tenants will be faced with a major rates rise in August?
§ Mr. MillanI think that what worries local authorities most is the considerable pressure on costs. This is one of the inflationary consequences of the last Government. As for rent rises, we have already said that details of the compensation for local authorities are being worked out.
§ Mr. Bruce-GardyneWill the hon. Gentleman come clean and acknowledge that his right hon. Friend the Secretary of State has said already that the local authorities are not to be compensated in full for the consequences of the rent freeze?
§ Mr. MillanI do not think that my right hon. Friend has said that at all.
§ Mr. Bruce-GardyneHe did say it.
§ Mr. BrewisWill the Government give preference to ratepayers in urban areas, and does that not mean that ratepayers in rural areas will be prejudiced?
§ Mr. MillanThe hon. Gentleman is talking about a different situation. In any event, the rate support grant order for Scotland will be due for consideration in this House very soon, and these points can be discussed then.