HC Deb 02 December 1981 vol 14 cc222-3
4. Mr. Robert Atkins

asked the Secretary of State for the Environment when he expects to publish his Green Paper on rate reform.

20. Mr. Chapman

asked the Secretary of State for the Environment if he will make a statement on progress on his consultation paper, "Alternatives to the Domestic Rating System."

The Secretary of State for the Environment (Mr. Michael Heseltine)

A Green Paper on alternatives to domestic rates will be published later this month.

Mr. Atkins

Is my right hon. Friend aware of how grateful Conservative Members are to him for making that announcement, especially those who have constituencies in Lancashire and whose ratepayers bear an enormous burden because of the supplementary rates that have been levied upon them? Is he further aware that, in addition to that burden, the ratepayers of Preston have had to bear an enormous rate increase since the change in local authority control? Does he realise that the early publication of a Green Paper, with the implications that that has, will be greatly welcomed?

Mr. Heseltine

I am very grateful to my hon. Friend. I sympathise with the irritation that is felt by ratepayers who have to bear the burden of supplementary rates. I know that my hon. Friend's views will find a wide audience.

Mr. Chapman

Does my right hon. Friend agree that the inherent unfairness of the rating system has multiplied as rate demands have escalated in recent years? Does he further accept that there are now millions of households that are suffering real hardship in paying their rates and cannot qualify under present legislation for rebates? Will he push forward with determination and confirm the prospect that there will be a great rating reform Bill during the lifetime of this Parliament?

Mr. Heseltine

My hon. Friend will know that my right hon. Friend the Prime Minister has pointed to the possibility that such a Bill could be introduced in the time scale that we have in mind. I support his view that increasing pressure is being placed on ratepayers. That is happening largely in the areas represented by authorities that are prepared to disregard the burdens that they place on the private sector to protect the over-high levels of expenditure in the public sector.

Mr. Maclennan

Why are the Government proposing to bring forward a Green Paper on domestic rates only? Why are they not taking the opportunity to examine the entire rating structure at the same time?

Mr. Heseltine

I think that the hon. Gentleman will understand that the challenge of finding alternative taxation to replace the £4.7 billion worth of domestic rating is challenge enough. To add to that the burden of replacing even larger sums from industrial and commercial rating would be a task too large to tackle in the short term.

Mr. Joel Barnett

What is the alternative that the right hon. Gentleman would personally prefer that would hurt no one and raise over .10 billion, which is the sum now raised by the rating system?

Mr. Heseltine

The right hon. Gentleman will know that no Secretary of State has a personal view on these matters. It is for the Government to reach a collective judgment.

Mr. Cormack

Bearing in mind that we have had the Layfield report, how long does my right hon. Friend propose to allow for consultation on the Green Paper?

Mr. Heseltine

When we publish the Green Paper, I hope that we shall look for representations and consultations to end in the early spring.