HC Deb 17 February 1938 vol 331 cc2093-5W
Sir A. Southby

asked the Minister of Health whether he has considered the growing apprehension that serious hardship may be caused by the revaluation for local taxation purposes which will come into effect next year; and what action it is proposed to take in the matter?

Sir K. Wood

Yes, Sir. I have received, as have my colleagues, a number of communications in this matter. It has also been, naturally, under consideration by the Central Valuation Committee appointed under the Act of 1925, and I have had the advantage of consultation with that body on the subject of possible courses of action. I have now received from the Committee the suggestion that, in all the circumstances, the best course will be to provide, by a postponement of the making of the new lists, an opportunity for the further consideration of the allegations of hardship which have been made and of the remedy, if any, which it may be appropriate to adopt. The postponement contemplated is for a period of two years, and the new lists would, it is contemplated, come into operation in 1941. The Government propose at an early date to introduce the necessary legislation for this purpose.

Following is a copy of the Committee's letter:

Central Valuation Committee,

New Public Offices,

Whitehall,

S.W.I.

12th February, 1938.

Sir,

Rating and Valuation Acts, 1925–37.

Third New Valuation Lists. 1. I am directed by the Central Valuation Committee to state that, as the Minister of Health is aware, they have had under consideration the position which has arisen by reason of the pressure now being put upon local authorities in some parts of the country with the object of dissuading them from carrying out the duty laid upon them by Parliament in the Rating and Valuation Acts, 1925–37, of making a third new valuation list which shall be in accord with the provisions of those Acts. The Committee are of opinion that while some local authorities will resist the pressure others may succumb to it. There may thus be created, as between different localities, a greater lack of uniformity in valuation than exists at the present time, and consequently the intention of Parliament that uniformity in valuation shall be promoted throughout each rating area, throughout each administrative county, and throughout the whole of England and Wales may be frustrated. 2. Among other contentions brought to our notice it is urged that in many areas the supply of houses (especially of houses available for letting) is still insufficient to meet the demand; that the rents now obtained for such houses as are available for letting are higher than would be the case if there were a normal relationship between supply and demand; and that consequently an application of the statutory definition of "gross value" in present circumstances would result in such increases in existing assessments as would give rise to hardship among certain classes of ratepayers. 3. Uniformity of valuation is essential within each rating area in order that rates may be properly and fairly charged upon the several ratepayers in such manner that there shall be demanded from each of them the sum he ought to pay—neither more nor less; it is essential within each administrative county in order that the several rating areas shall be called upon to pay the sum that each ought to contribute towards county expenditure—neither more nor less; and it is essential throughout England and Wales in order that a foundation may be laid for such a reform of the Government Grant system as shall ensure that that system shall operate fairly as between the several counties and county boroughs. These are severely practical objects and the Committee remain convinced that their attainment at the earliest practicable moment is a vital necessity. 4. Whilst not expressing any views upon the allegation of hardship, the Committee feel, having regard to the number of representations which have been made, that it is very desirable that the allegation should be investigated and that if it is found to be justified the appropriate remedy should be found. Consequently, of the suggestions made to them, they would prefer that, in order to give time for such an investigation, legislation should be introduced to provide for the postponement of the coming into operation of the third new valuation lists under the Act of 1925 until the 1st April, 1941. If so desired by the Minister, the Committee would, of course, be willing to give any assistance within their power in the matter. 5. The Minister will appreciate that it is very desirable that a public notification of any decision at which the Government may arrive on this question should be made at the earliest moment.

I am, Sir,

Your obedient Servant,

(Sgd.) F. J. OGDEN,

Secretary of the Committee.

The Secretary,

Ministry of Health,

Whitehall, S.W.I.