Rating Reform (Hansard, 29 June 1988)

§ 12. Mr. Allen
To ask the Secretary of State for Scotland what further representations he has received from England on the poll tax.

§ Mr. Lang
Eighty seven such representations have been received since 1 January 1988.

§ Mr. Allen
Is the Minister aware that, despite the Government, Scottish higher education still enjoys a high reputation and that a large number of English students go to Scotland for their education? Is he further aware that the poll tax will act as a disincentive to those students and the reduced number of English students going to Scotland to study may well diminish the number of Scottish Tory Members in the House?

§ Mr. Lang
The hon. Gentleman's question makes a change from the usual complaint that we receive in Scotland that there are too many English students corning up. But the quality of higher education in Scotland is such that it will continue to attract English students in large numbers. Where they find themselves liable to pay 20 per cent. of the community charge they will be able to console themselves with the thought that they are saving a substantial amount on rates, which would otherwise be included in their rent and rates payment.

§ Mr. Worthington
The Minister will be aware that there is widespread anxiety that, with revaluation and the introduction of the uniform business rate in England and Wales, the present beneficial treatment that the north of England receives in terms of the amount of rates paid will be even greater and there will be a substantial disadvantage to Scottish industry. The Minister will also be aware that the CBI and the chambers of commerce in all sectors of Scottish public life are worried that the Scottish Office is taking no steps whatever to protect Scottish industry and commerce when that occurs. Will he comment?

§ Mr. Lang
I shall gladly comment. As a former finance convenor of Strathclyde regional council, the hon. 359 Gentleman knows better than most the measure of the burden that Scottish Labour-controlled councils have laid on business in Scotland over the years, as a result of which Scottish business pays higher rates than other parts of the United Kingdom. Until we can achieve harmonisation of valuation law and practice north and south of the border, we have introduced index-linking in the Abolition of Domestic Rates Etc. (Scotland) Act 1987 to protect business in Scotland from the depredations of members of local authorities, which is what the hon. Gentleman was formerly.