HC Deb 18 June 1979 vol 968 c892
10. Mr. Alec Jones

asked the Secretary of State for Wales what is his estimate of the effect of the Budget Statement on rates, council house rents and mortgage rates in Wales.

Mr. Wyn Roberts

The effect on rates, council house rents and local authority mortgage rates in Wales will depend on action taken by individual local authorities. As to mortgage rates generally, the building societies will need to assess the total impact of the Budget on their investment inflow and see how markets react.

Mr. Jones

The Minister will understand that I expected the answer that part of this would depend on local authority decisions, but may I take it that the Government will be issuing some guidance to local authorities in this matter? I want to know whether that guidance will be that local authorities should increase rates, reduce services or increase unemployment in the public sector.

Mr. Wyn Roberts

It is expected that in keeping with Government policy local authorities will act responsibly by reducing expenditure and not by raising additional rates. Local authorities must determine their own priorities and decide where to make the necessary economies in services.

Dr. Roger Thomas

On 11 May, when the Secretary of State ventured into Wales to give, as it were, a state of the nation report, he said that he would give local authorities a greater choice. What supernatural powers does he intend to give to local authorities to enable them to maintain services, if they are not to raise rates?

Mr. Wyn Roberts

I can only repeat what I have said. It is entirely for local authorities to review their services. We want them to reduce the total volume of their expenditure.