§ 7. Mr. Gwilym Jonesasked the Secretary of State for Wales what penalties he has imposed upon South Glamorgan county council as a result of the rate increases in 1981–82, 1982–83, 1983–84, 1984–85 and 1985–86, respectively.
§ Mr. Nicholas EdwardsA local authority incurs rate support grant penalties, not because of rate increases, but only as a consequence of spending in excess of its expenditure target. South Glamorgan suffered a grant penalty of £234,532 in respect of the financial year 1981–82. It has incurred no penalty since.
§ Mr. JonesThe penalty in 1981–82 mentioned by my right hon. Friend is hardly surprising as, coincidentally, the rates for that year went up by 54 per cent. South Glamorgan county council's latest rate increase is the 609 highest in south Wales. Does my right hon. Friend agree that the massive rate increases in South Glamorgan during the last four years have been a very significant factor in job losses?
§ Mr. EdwardsSouth Glamorgan's rate increases have varied from year to year. What my hon. Friend has said may be right, taken over a period. However, there have been individual years when the rate increase has been kept down. Nevertheless, it is unquestionably true that high rate increases make it more difficult for industry and business and deter job creation.