HC Deb 24 November 1981 vol 13 cc751-2
Q4. Mr. Chapman

asked the Prime Minister if she will list her official engagements for Tuesday 24 November.

The Prime Minister

I refer my hon. Friend to the reply that I gave some moments ago.

Mr. Chapman

Will my right hon. Friend take a little more time today to consider the increasing unfairness of the rating system, notwithstanding supplementary rates? Will she recognise that there is increasing impatience on the Conservative Benches for the consultation paper on alternatives to the domestic rating system? May I tempt her to be a little more forthcoming and to agree that that consultation paper should be a short, quick step towards radically reforming the rating system by a Bill in this Parliament?

The Prime Minister

I know of my hon. Friend's very particular interest in this subject, and he knows that I share his views, as do the Government, about the unfairness of the rating system. The Green Paper to which he refers should be available next month. We shall then enter a period of consultation. The speed of that will determine whether we can bring forward a Bill, as I believe would be advisable if it is possible, during the present Parliament.

Mr. Race

Will the Prime Minister confirm or deny the stories in the national newspapers earlier this week that the Government are to cut the real value of unemployment benefit? Given that the Government have already made a 5 per cent. cut in the recent past, does she agree that a further reduction in the real purchasing power of the unemployed is totally unjustifiable?

The Prime Minister

I neither confirm nor deny any such stories as are prevalent in the newspapers at the moment. A full statement will be made in due course.

Mr. Farr

May I assure my right hon. Friend that if she wants to make an announcement that domestic rates will be abolished in the lifetime of this Parliament, it will be received throughout the country with great and overwhelming support?

The Prime Minister

I hope that my hon. Friend is correct. I would have to make clear that the revenue that comes from the rating system, both domestic rates and industrial and commercial rates, would have to be replaced by revenue from elsewhere. [Interruption.] One cannot have expenditure not covered by taxation. Only an Opposition of the irresponsibility of the present one would suggest that one could. The difficulty is deciding what taxation should be levied to cover the loss of income from the rating system.