HC Deb 08 December 1976 vol 922 cc449-50
21. Mr. Silvester

asked the Secretary of State for the Environment whether he intends to act upon the Layfield Report on local government expenditure.

Mr. Shore

As I told the House on 19th May, before taking any decisions on the Layfield Report the Government first want to consider the views of the public and interested bodies. I asked for comments by the end of November. We are pressing ahead with our studies of the report and the comments now put to us. I shall announce decisions as soon as we are in a position to do so.

Mr. Silvester

As we are now in December, may we look forward to a very early reply in view of the fact that the present situation with the rates is causing very great concern and is likely to get worse? Will the Minister indicate whether he is providing us with an alternative source of local government finance to take the strain away from the rates?

Mr. Shore

I cannot answer that in the way the hon. Member would wish. The Layfield Report put forward a particular proposal for a new source of income for local government in the form of local income tax. The Conservatives have attacked this and I am still considering it, although I am well aware of the difficulties involved. I remind the hon. Gentleman that it is only seven days since we received all the comments which we invited on this matter, and I am still digesting these and thinking about them.

Mr. Blenkinsop

Does my right hon. Friend agree that the only basis on which there is any possibility of ever introducing a local income tax is a regional basis? Will he therefore encourage the Government to bring forward their proposals for the regions of England as well as the proposals for devolution in England and Wales?

Mr. Shore

My hon. Friend may be leading me far from the question of local government, but on the other hand he may not. I advise him to await publication of the White Paper on devolution in England, which I hope is now virtually upon us.