HC Deb 08 December 1976 vol 922 cc435-6
9. Mr. Cronin

asked the Secretary of State for the Environment what advice he proposes to give to local authorities on how to minimise increases in rates, having regard to the Government's proposed limitation of rate support grants.

Mr. Shore

The order giving effect to the rate support grant settlement requires the approval of this House. If this is obtained, I would then propose to issue a circular to all local authorities explaining the implications of the settlement.

Mr. Cronin

Does my right hon. Friend agree that increasing rates are now becoming an intolerable burden for many people who are least able to afford them? Will he give detailed and frequent advice to local authorities on how to reduce expenditure, consistent with Socialist priorities?

Mr. Shore

It is not my intention to give detailed advice. I believe that the local authorities themselves must be the deciders of the pattern of expenditure for which they are responsible. We shall be indicating some of the priorities as we see them. I emphasise that it is for the local authorities to make these decisions. As for the intolerable burden of rates, I do not wish in any sense to minimise the effects of increasing rates, but I am almost as surprised as, I suspect, other Members will be to find by how little rates vary as a percentage of disposable income not only from one year to the next but over decades. We have to bear that in mind.

Mr. Michael Morris

What value can the local authorities place on the Secretary of State's recommendations when he suggests that unemployment will be only 25,000 and the authorities have calculated that it will be at least 50,000?

Mr. Shore

Some of the local authorities made calculations. I pointed out to them—I think that I had by far the better of the argument—where they were wrong. They made wrong estimates about the level of expenditure that we were seeking to achieve in 1977–78. They also made other miscalculations. I do not complain about that because they did not have all the information that was available to us. However, I rebut their figure.

Mr. Noble

Does my right hon. Friend accept that while he may advise local authorities he has little power to instruct them, especially in the direction in which they will put their expenditure? What steps will he take to ensure that we do not have a repetition of the action that was taken in Bury last year, when the Tory-controlled authority vindictively and indiscriminately attacked social services and closed a number of establishments?

Mr. Shore

This is a great problem, but I put it to my hon. Friend that it is one of the hazards that arises out of local democracy. Although I share my hon. Friend's feelings about under-spenders, equally there is great sentiment about what people assume to be over- spenders. Unless we leave discretion to local authorities, I honestly do not see how we can conduct local democracy.