HC Deb 12 November 1975 vol 899 cc1513-5
9. Mr. Gray

asked the Secretary of State for Scotland if he will change the method of determining rate support grant in Scotland in order to ensure a fairer distribution for residents in the Highland Region.

Mr. Millan

No, Sir. The distribution of grant is already fair to ratepayers in the Highlands.

Mr. Gray

Will the Minister consider freezing the transitional formula for the allocation of rate support grant pending the report of the Layfield Committee? Is he aware that in the Highland Region there is a continuing fear of domination from the central belt of Scotland? Is he further aware that that fear has been highlighted by the most recent change in the rate support grant formula?

Mr. Millan

The formula for 1976–77 is under consideration by the working party. As for the current year, although the Highland Region has the highest estimated expenditure per head of the eight regions—namely £165 per head—after specific and needs grant it will have the lowest rate burden per head, only £38, compared with the rest of Scotland where the figure is £66 per head. In face of that factor, I cannot understand how the hon. Gentleman can claim that his region was dealt with unfairly in the current year.

Mr. Russell Johnston

The Minister must know that the Highland Regional Council and the local authorities in the Highlands do not take his view that the new formula is fair. It is disingenuous to quote figures of individual rate burdens. Is not the problem in the large sparsely populated areas that there is a heavy demand on public services?

Mr. Millan

I am talking about the net burden on the ratepayers. It is clear that this burden in the rural areas of Scotland is substantially less than the rate burden per head of ratepayers in urban areas. The purpose of the distribution formula, which last year did not work quite as effectively as I hoped it would, was to redress the balance in favour of urban areas. That will remain my view as to what should be done about the formula in 1976–77.

Mr. Thompson

Is the Minister aware of the concern expressed in Dumfries and Galloway about the rate burden? What does he suggest I say to one constituent who is a forestry worker with a basic wage of £32 per week, who lives in a Forestry Commission tied house out in the country and who has seen his rates shoot up from £18 last year to £52 this year?

Mr. Millan

Dumfries and Galloway do very well out of the distribution formula, and that region has one of the lowest rate burdens per head of population in Scotland. I would remind the hon. Gentleman that there are low-paid workers in Scottish cities as well as in the rural areas.

Mr. Robert Hughes

Do not the complaints in rural areas about lack of services arise because in the past those areas were badly served by Tory Party councillors, whose main concern was not that of services, but of penny-pinching misery?

Mr. Millan

That is true, and it is also true of some areas in the south-west of Scotland.

Mr. Alexander Fletcher

What consideration has the Minister given to replacing the present rate system with one that will ensure a much fairer distribution of local government expenditure among the general population?

Mr. Millan

A good deal more than the Conservative Government did—because they did nothing at all. We at least appointed the Layfield Committee.

Mr. Gray

In view of the highly unsatisfactory nature of the Minister's reply, I beg to give notice that I shall seek to raise this matter on the Adjournment at the earliest possible moment.