§ 19. Mr. Neubertasked the Secretary of State for the Environment what is his 449 estimate of the likely average increase in rates for the Greater London boroughs as a result of his decision on the rate support grant for 1977–78.
§ Mr. ShoreI am not in a position to make such an estimate: but in London as a whole percentage rate increases in 1977–78 should be lower than the national average.
§ Mr. NeubertWould not the Secretary of State agree that the likely outcome would depend on an extensive drawing from balances, which would be a once-off opportunity? Would this lead to a substantially higher increase in rates the following year?
§ Mr. ShoreI do not think so. I take the hon. Member's point, but we have made estimates about the drawing down of excess balances because local authorities rated in 1976–77 for a level of expenditure which was much higher than forecast, and which they agreed was inappropriate in the circumstances. They have cut back on that, and now most local authorities will have moneys in balance which they would not otherwise have had.
§ Mr. HardyIs my right hon. Friend aware that the gap between the rate bills faced by ratepayers in London and those in the rest of the country has narrowed since local government reorganisation? In recent exchanges from the Opposition Front Bench there has been no reference to the pledge that the Opposition made last year to abolish domestic rating. If they had mentioned this, it would compound the problem which Opposition spokesmen have mentioned this afternoon.
§ Mr. ShoreI am grateful to my hon. Friend for mentioning that. We would be interested to hear at a later stage what the Opposition have to say about that. My hon. Friend is quite correct: there has been some narrowing of the gap between the rates in London and elsewhere, but it was a very large gap indeed. It needed to be narrowed, and the need for further narrowing will continue.