§ 5. Mr. Rostasked the Secretary of State for the Environment what is his estimate of the average increase in domestic rates next year; and what proposals he has to protect ratepayers.
§ Mr. CroslandNo estimate has been made. But in the consultations which I am having with the local authority associations on rate support grant, I of course have very much in mind the implications for domestic rate rises in 1975–76.
§ Mr. RostAs the Secretary of State appears to have no intention of spreading the burden of huge rate increases more fairly, may I ask whether he will prepare legislation to let off retrospectively those ratepayers who rebel?
§ Mr. CroslandI have every intention of spreading the rate burden next year as fairly as can be done. I note always the solicitude which the hon. Gentleman shares for ratepayers in the neighbouring constituency to his.
§ Mr. SnapeDoes my right hon. Friend agree that the responsibility for the tremendous rate increases this year and the increases forecast for next year lies pri
§ Mr. FreesonYes, until such time as, in one form or another, rented property is brought into social ownership.
§ Following is the information:
§ marily with the Conservative Party and in particular with the architect of the disastrous local government reorganisation, the right hon. Member for Crosby (Mr. Page)?
§ Has my right hon. Friend also noticed that at least two newspapers have publicised the fact that a good portion of the tremendous increase is due to the salaries being paid to chief and senior officers in local government? Will he take steps to institute an inquiry into the creation of "jobs for the boys" that has occurred since local government reorganisation?
§ Mr. CroslandI go a long way with my hon. Friend. I think that the Conservative local government reorganisation was wasteful and extravagant, precisely as we prophesied it would be. I disagree with my hon. Friend only in that I think the guilt that he is trying to attribute should be shared more evenly. Half the guilt should go to the right hon. and learned Member for Hexham (Mr. Rippon) for telling local authorities in January this year to calculate their rates on the assumption of only a 9 per cent. rate of inflation.
§ Mr. RossiWill the Secretary of State either confirm or state to be inaccurate 391 the reports that seem to be coming in that rates may be increased by as much as 60, 80 or even 100 per cent. in some parts of the country in the coming year? If this is the alarming truth of the situation, will he take measures to ensure that the increases are kept within tolerable limits by making the appropriate central Government subsidy to local authorities?
§ Mr. CroslandThere is a lot of jumping about on the Opposition benches, which I find puzzling. The last time I saw the hon. Gentleman he was on the Opposition Front Bench. I sympathise with him for his demotion in the course of the turmoil currently upsetting the party to which he belongs.
I would hope that the average rate of domestic increase next year will be less than 100 per cent.
§ 20. Mr. Madelasked the Secretary of State for the Environment what plans he has for providing relief for ratepayers from April 1975: and whether these plans will include the transfer of the official quota of local education authority teachers' salaries to the Exchequer.
§ Mr. OakesMy right hon. Friend has told the House that he is at the moment discussing the whole Question of the rate support grant for 1975–76 with the local authority associations. I have no plans to transfer teachers' salaries to the Exchequer. Such suggestions form part of the Layfield Committee's considerations. It would be premature to act before it reports.
§ Mr. MadelAs teacher's salaries are in a sense negotiated nationally, is not the simplest and fairest way to provide relief for ratepayers from next April to transfer these salaries to the Exchequer? That would be a simple and fair thing to do.
§ Mr. OakesIt would appear to be simple and fair but in fact it would distort the rate support grant and local government finance. I think it far better that the Layfield Committee should look into the full implications of how that suggestion would affect local authorities.
§ Mr. William HamiltonAssuming that such a transfer took place, what would it mean in terms of an increase in income tax?
§ Mr. OakesI cannot answer that question directly but I can tell the House that the total bill for teachers' salaries for 1974–75 is £1,438 million, which is about 25 per cent. of local authority expenditure on rate fund services.
§ Mr. Stephen RossIs the Minister aware of the great difficulties facing small shopkeepers and owners of commercial premises who have had no rate relief from the Chancellor of the Exchequer for the last financial year? Will the hon. Gentleman have a word with his right hon. Friend to see whether any further rate relief, which we hope will be offered for the next financial year, can be extended to small shopkeepers and owners of commercial premises?
§ Mr. OakesSmall shopkeepers and owners of commercial premises are well in our mind while we are at present discussing this matter with local authorities. We are aware of their problems.