HC Deb 13 November 1974 vol 881 cc386-8
3. Dr. Edmund Marshall

asked the Secretary of State for the Environment what is the present position in respect of his negotiations on the rate support grant for 1975–76.

7. Mr. Gwilym Roberts

asked the Secretary of State for the Environment what plans he has for increasing Her Majesty's Government's financial support to local authorities for the financial year 1975–76; and if he will make a statement.

Mr. Crosland

I am still in negotiation with the local authority associations. But there will, of course, be a full debate on the Rate Support Grant Order when it is laid.

Dr. Marshall

Will my right hon.. Friend make sure that all local authorities know how much grant they will each receive for next year before they have to take decisions determining their general rate levels? Will the domestic element of the grant be at a uniform level throughout England and Wales?

Mr. Crosland

I am afraid my hon. Friend will have to wait a little longer for the answer to his second question, but I can say "Yes" in answer to his first point. We are well up to the timetable in the statutory negotiations that are now going on. This is in sharp contrast to our predecessors who were still negotiating at the end of January.

Mr. Graham Page

Is the right hon. Gentleman negotiating on the traditional basis of a 60 per cent. rate support grant? Does he realise that for next year there should be a rates moratorium and a 100 per cent. grant and no rates charged?

Mr. William Hamilton

Rubbish.

Mr. Crosland

The House admires enormously the intellectual audacity of the right hon. Gentleman now that he has moved into opposition, compared with his incredible and total caution when he was a Minister.

Mr. Roberts

Does my right hon. Friend accept that whereas none of us on this side of the House would wish to join in the absurd clamours from the Opposition on this matter, there are many counties, such as Staffordshire, that are anxious to increase their services but at the present level of finance and expectations are doubtful whether they can even maintain their services?

Does my right hon. Friend agree that irrespective of how comprehensive may be the social legislation coming from the House, it will be useless unless resources are available at grass roots for such things as social services and education to implement that legislation?

Mr. Crosland

I agree with my hon. Friend that all local authorities would greatly like to improve all their services. However, I must point out that local authority spending in the past three years has increased by about 8 per cent. a year in real terms and it is highly unlikely that in the coming year local authorities will be able to have anything like that rate of increase in their expenditure.

Mr. Geoffrey Finsberg

Does the right hon. Gentleman accept that the clamours which are coming from local government are coming from local authorities of all political persuasions and that they are becoming a little tired of being asked by this House to take on additional services only to find that, under whatever Government, this House denies them the necessary resources?

Mr. Crosland

I am not sure whether this is the hon. Gentleman's first appearance following his appointment to the Opposition Front Bench, but in case it was I welcome him. I am well aware that those demands are coming from local authorities, of all political persuasions, I am also well aware that local government has a legitimate complaint against the central Government, of both 'political parties, because of the tendency to issue circulars urging constant increases in expenditure while making bland declarations asking for a reduction in total expenditure.

On the other hand, what happens next year will depend not only on the deci sions of the central Government but on the ability of local government to recognise that it is now operating in a very cold climate.