§ 6. Mr. Kirkwoodasked the Secretary of State for Scotland what representations he has received about the effects of the proposed rating revaluation on commercial ratepayers in the Borders region.
§ Mr. AncramI have received several representations to the effect that the values fixed for commercial property in the Borders are too high. Aggrieved ratepayers may appeal to the local valuation appeal committee or to the courts. In Scotland as a whole, I understand that the average multiplier for commercial property is slightly below that for all property. It follows that commercial subjects overall should, in the coming year, be paying a smaller proportion than in the past of the rate bill.
§ Mr. KirkwoodIs the Under-Secretary of State aware that commercial ratepayers in the Borders region are finding it difficult to reconcile what the Secretary of State for Scotland said to me only last Thursday—that across the country commercial rates had fallen by 3.2 per cent.—with the fact that the regional assessor in the Borders 293 claims that the increase has been 41 per cent., and that some of the increases are coming through at 160 per cent.? The hon. Gentleman knows the area as well as I do, and knows that commercial increases of that magnitude would require a far bigger upturn in economic activity than has taken place in the Borders area. Why has this happened? Can the Minister give us a promise of some relief for commercial ratepayers in the Borders area?
§ Mr. AncramThe hon. Gentleman asked for an explanation why this has taken place, and until we see the full effects of revaluation it will not be possible to judge. It may be that in previous revaluations the valuations were set lower than the average. I know that my right hon. Friend the Secretary of State has already told the hon. Gentleman that revaluations are about gainers and losers, because they balance the rating burden. Within his area, it is worth noting that there are concerns that will benefit from revaluation.
§ Mr. KirkwoodI have not found any.
§ Mr. AncramI suggest that the hon. Gentleman goes to the Edinburgh Wool Mill in Jedburgh, which will have a rate reduction of 20 per cent., or Moffat Woollens in Jedburgh, which will have a rate reduction of 25 per cent., or the Kelso ice rink, which he knows well, which will have a reduction of 10 per cent.
§ Mr. SpeakerOrder. The question is about commercial rates in the Borders area.
§ Mr. ForthIn view of the widespread concern expressed about commercial rates in the Borders, and the concern about domestic rates, as expressed by my father in Glasgow recently, will my hon. Friend take the lead in rating—[Interruption.]—
§ Mr. SpeakerOrder. English Members have some rights as well.
§ Mr. ForthWill my hon. Friend now take the lead in encouraging a thorough reform of the rating system in Scotland, to set a model for the rest of the United Kingdom?
§ Mr. AncramI am involved, as I think hon. Members know, in a Government review, with my English colleagues, of the system of local government finance. At this stage, obviously, I would not want to pre-empt the considerations within that review. I am concerned about the levels of valuation increases for commercial enterprises. If those who have received them think that they are unfair, they must realise that they have a right of appeal.
As to domestic ratepayers, of course we have given a large measure of relief to the domestic ratepayers. That was announced the other day.
§ Mr. Allen AdamsWill the Minister take a little trip to Inchinnan and speak to the former Conservative group leader of Paisley town council, one Mr. James Neal.—[Interruption.]
§ Mr. SpeakerOrder. Is that in the Borders? [HON. MEMBERS: "No."] The hon. Gentleman must relate his question to the Borders.
§ Mr. ForthWill my hon. Friend now take the lead in encouraging a thorough reform of the rating system in Scotland, to set a model for the rest of the United Kingdom?
§ Mr. AncramI am involved, as I think hon. Members know, in a Government review, with my English colleagues, of the system of local government finance. At this stage, obviously, I would not want to pre-empt the considerations within that review. I am concerned about the levels of valuation increases for commercial enterprises. If those who have received them think that they are unfair, they must realise that they have a right of appeal.
As to domestic ratepayers, of course we have given a large measure of relief to the domestic ratepayers. That was announced the other day.
§ Mr. Allen AdamsWill the Minister take a little trip to Inchinnan and speak to the former Conservative group leader of Paisley town council, one Mr. James Neal—[Interruption.]
§ Mr. SpeakerOrder. Is that in the Borders? [HON. MEMBERS: "No."] I think that the hon. Gentleman must relate his question to the Borders.
§ Mr. SpeakerThe question concerns rating in the Borders.
§ Mr. MaclennanIs the Minister aware that commercial ratepayers in the Borders are more sharply aware than anybody else in Scotland of the unfairness of the revaluation going ahead on the Scottish side of the Borders, while nothing is being done in England?
§ Mr. AncramI am sure that ratepayers in the Borders, commercial or otherwise, are as aware as anybody else that in Scotland, by statute, we have always had regular revaluations and, indeed, both sides of the House, if I may say so, have taken some pride in those revaluations, because we believe that over a period of time they ensure that there is fairness in the way that the rate burden is apportioned. I think that it is a matter for some surprise that the hon. Gentleman, who was a member of the Government who presided over a revaluation in Scotland in 1978 when none occurred in England, should take the line that he does now.
§ Mr. CraigenCan the hard-pressed commercial ratepayers in the Borders give any credence to the rumour that the Prime Minister is well disposed to taking commercial and industrial rating out of the system altogether?
§ Mr. AncramThe hon. Gentleman has heard what I have said about the review that is taking place. I am sure he will understand that I do not want to pre-empt the consideration of that review.