§ 10. Mr. Gillasked the Secretary of State for the Environment when was the date of the last revaluation of domestic and business properties for the purposes of fixing rateable values.
§ Mr. Howard1973.
§ Mr. GillWill my hon. and learned Friend accept that the failure by successive Governments to implement regular revaluations has brought the rating system into disrepute? Does he further agree that this is part of a deliberate and stealthy policy by the Civil Service to discredit local government? Finally, will he confirm that under Government proposals for a community charge local authorities will be dependent upon central Government for up to 75 per cent. of their funding?
§ Mr. HowardThe original decision to postpone the revaluation was taken by the Labour Government in 1978. It was sensible not to proceed with a revaluation pending deliberations as to what proposals we intended to put into place. The failings and defects of the present system go far beyond anything that a revaluation, either then or now, could be expected to remedy.
§ Mr. RookerThe Minister mentioned the consequences of a revaluation in answer to a previous question. Does he remember the Secretary of State's predecessor telling the House that the consequences of revaluation would be that 1 million households would end up paying 80 per cent. more? He himself said this week that if a revaluation was done on capital values, 2.5 million would pay 50 per cent. more. In reality, under the poll tax 2.7 million households will end up paying more than 80 per cent. extra in local taxes.
§ Mr. HowardThe effect of the community charge proposals will be to replace a desperately unfair system, in which very often the poor pay more and not merely the same as the rich, with a fair, accountable system of local government finance in which every adult will contribute the same amount, subject to rebates for those who need help.
§ Mrs. Ann WintertonIs my hon. and learned Friend aware of the concern of industry, particularly manufacturing industry, at the revaluation of commercial property and the possible resulting leap in the rate burden in certain areas which will be added on to costs? Furthermore, can my hon. and learned Friend assure the House that the uniform business rate will be pitched as low as possible to reflect the fact that businesses pay directly for many of the services that they receive from local government?
§ Mr. HowardThe uniform business rate will be pitched at a level that will reflect the continuation of the contribution of business to the cost of local government at broadly its present level. Of course, business will benefit substantially from the statutory guarantee which we intend to put into place that the business rate will not increase in any year by more than the rate of inflation. As to revaluation, may I assure my hon. Friend that I expect the manufacturing sector of industry to benefit particularly from the revaluation that is under way.