§ 3. Mr. Ridsdaleasked the Chancellor of the Exchequer how much he estimates taxes have increased since February 1974 compared with rates.
§ Mr. Denzil DaviesSince 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. RidsdaleSince 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. DaviesThe 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. CantWill 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. DaviesYes, Sir.
§ Mr. Michael LathamHas 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. DaviesNo, Sir.