HC Deb 26 February 1975 vol 887 cc474-6
7. Mr. Shersby

asked the Secretary of State for the Environment if he will consider allocating an extra sum in rate support grant to the Greater London area in view of the recently announced rate increases.

Mr. Oakes

No, Sir. The House approved the Rate Support Grant Order for 1975–76 on 12th December 1974. It was by a long way the most generous ever.

Mr. Shersby

Does the Minister agree that local authorities are retained by ratepayers and taxpayers to provide local services and that in some senses they are in the same relationship as employers and employees? Will he, therefore, tell the House whether the social contract applies to local authorities? If so, what action should be taken by ratepayers when they are faced with a claim for rates which is in excess of the social contract guidelines?

Mr. Oakes

Taxation does not come into the social contract, but I have said repeatedly to local authorities that the nation faces a great deal of economic difficulty. It behoves local authorities as much as anyone else to place priority on getting our balance of payments right and encouraging, for example, industrial production. That is the message I have tried to convey not only to local authorities in London but to authorities throughout the country.

Mr. Tomlinson

Does my hon. Friend agree that many of my right hon. and hon. Friends are increasingly sickened by the constituency demands of Opposition Members for more and more expenditure from central Government resources when at the same time they seek to criticise the Government for the increase in the public borrowing requirement?

Mr. Oakes

I could not agree more with my hon. Friend. We are this year providing £5,430 million of the estimated local government expenditure of £8,000 million. I agree with what my hon. Friend says. I take the same view about people outside the House who, not only in the same speech but in the same sentence, demand better services and reduced rates.

Mr. Speed

In view of the Minister's earlier reply, may I ask whether he considers that the current £140 million municipalisation programme of the GLC is helping to keep down London's rates?

Mr. Oakes

First, I would very much like to welcome the hon. Gentleman back to the Opposition Front Bench. I am delighted to see him back in his place. As regards particular projects, the councils must decide whether within their areas they are inescapable commitments.