§ 12. Mr. Youngerasked the Secretary of State for Scotland what estimate he has made of the average percentage increase in domestic rates in 1979–80 compared with the previous year.
§ Mr. MillanI estimate that, taking into account the effect of the Rate Support Grant (Scotland) Order 1978, which the House is due to debate tomorrow, the average percentage increase in domestic and other rates in Scotland in 1979–80 should be well within single figures.
§ Mr. YoungerIs not this bad news for ratepayers, since the Government's policy is to restrict their wage increases to 5 per cent.? Is the Secretary of State aware that there is widespread anger in the rural areas because of the Government's gerrymandering of the rate support grant, which means that rural areas which are not Socialist will have to pay for years of Socialist neglect of our cities?
§ Mr. MillanThat is a ludicrous accusation. It is also a scandalous one, because these matters are discussed with the Convention of Scottish Local Authorities.
§ Mr. YoungerLocal authorities are very angry.
§ Mr. MillanThey are not.
§ Mr. YoungerI have had letters from them.
§ Mr. MillanI dare say that the hon. Gentleman has had letters from some Scottish local authorities. But the extent of the redistribution is extremely modest. It amounts to about £4 million to £5 million out of a total rate support grant settlement of well over £1,000 million next year. I shall be delighted to debate this matter extensively tomorrow. I hope that Conservative Members who are complaining about this will be here, because last year they were conspicuous by their absence.
§ Several Hon. Members rose—
650§ Mr. SpeakerOrder, we must make quicker progress, and I shall call fewer hon. Members to ask supplementary questions.
§ Mr. GourlayHas my right hon. Friend received representations from Fife regional council against the proposed rate support grant because of the additional amount of money which is being allocated to Glasgow and the West of Scotland? Will he assure the House that before he presses the matter to a Division tomorrow night he will reconsider the representations from the various regional authorities?
§ Mr. YoungerNow answer my question.
§ Mr. MillanIt is no use my hon. Friend or anyone else talking about the problems of deprived urban areas in Scotland, unless they are willing to face some of the implications. What I have done this year is to make a modest redistribution. Incidentally, it is a good deal more modest than happens in England regularly under both Conservative and Labour Governments. I stand by that redistribution. It is a very modest one, indeed, and I shall be delighted to debate the matter tomorrow night, regardless of the views of the Fife regional council or anyone else.
§ Miss Harvie AndersonDoes not the right hon. Gentleman understand the reality of this? For example, in a village in my constituency, a garage which was formerly rated at £930 is now rated at £4,309. That is the sort of increase that people cannot sustain, especially those who are trying to run small businesses.
§ Mr. MillanWith great respect, that has absolutely nothing to do with the rate support grant order. It has to do with revaluation. I repeat that last year domestic ratepayers in Scotland paid 6 per cent. less rates than they did in the previous year. That is the reality of the valuation for domestic ratepayers. Next year, these same domestic ratepayers will pay increased rates of well within 10 per cent. In my view, taking the two years together, domestic ratepayers in Scotland will pay no more than they did in 1977–78. That is very good news for domestic ratepayers.