HC Deb 16 December 1976 vol 922 cc1706-7
3. Mr. Ridsdale

asked the Chancellor of the Exchequer how much he estimates taxes have increased since February 1974 compared with rates.

Mr. Denzil Davies

Since many taxes are levied on an annual basis and receipts show seasonal variation, figures relating to the particular month of February would be misleading. However, between the financial year ending April 1974 and the current year as estimated in the Financial Statement in my right hon. Friend's last Budget, taxes will increase by 84 per cent. while rates increase by 71 per cent.

Mr. Ridsdale

Since so many of the charges on local government are national and the result of Government policy, and not local, why do the Government get the councils to do their dirty work for them?

Mr. Davies

The Government are not getting local authorities to do their dirty work for them. In fact, the increase in taxes has been greater over the period than the increase in rates. Most hon. Members would agree, I think, that if we are to have a healthy local democracy there must he a local form of raising taxes. I should have thought that that was the basis for local taxation.

Mr. Cant

Will my hon. Friend impress on Conservative Members that the significant statistical fact is that, since about 1890, rates have taken about 2½ per cent. of disposable income in every year?

Mr. Davies

Yes, Sir.

Mr. Michael Latham

Has not the latest rate settlement been particularly politically biased, since it is deliberately intended to help Labour-controlled inner city areas to the detriment of Conservative-controlled rural areas?

Mr. Davies

No, Sir.

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