§ 18. Mr. Skeetasked the Secretary of State for the Environment what he proposes to do about the rating system.
§ Mr. CroslandI am awaiting the report of the Committee of Inquiry into Local Government Finance.
§ Mr. SkeetAs the Budget season is now upon us, will the Secretary of State recommend to the Chancellor that rates or a part of the rates be allocated as a deduction against income tax? Will he consider in his negotiations that the realistic rate of inflation is not 8.4 per cent. but 20 per cent.? Will he give a realistic rate in settling the terms which will shortly have to be negotiated?
§ Mr. CroslandConservative Members have certainly been showing the most fertile imagination on the subject of rates since they assumed the rôle of opposition. There was no hint of this in their documents when in government. I will happily pass on the hon. Member's suggestion, perhaps not to the Chancellor but to Mr. Layfield, the chairman of the inquiry.
§ Mr. Tom KingIn showing fertile imagination, will the right hon. Gentleman confirm that his frivolous remark about there not being more than a 100 404 per cent. increase this year was intended as a definite joke? It will not be seen as a joke by many of my constituents and those of other hon. Members who after last year's increases are acutely worried about what they may face this year? That sort of remark will be taken out of context and misunderstood around the country and will give enormous concern.
§ Mr. CroslandI am sorry if a remark like that is to be so misunderstood and quoted, out of context. I find it hard to believe. If it is really the case, I am extremely sorry about it. I assume that the hon. Gentleman attended the two full, indeed fierce, debates on rates earlier this year. He kindly came to see me on a deputation on the subject. He must know that I am as acutely concerned as he is about the rating situation, and if an element of unwise humour is likely to be misunderstood I apologise for it.