§ 42. Mr. Dudley Smithasked the Minister of Housing and Local Government if, in view of the increasing financial liabilities placed on local authorities, he is satisfied that the methods of raising local revenue by way of the rating system are equally shared among tax-paying members of the community; and if he will make a statement.
§ Mr. SkeffingtonNo close correspondence between the incidence of rates and that of other taxes is to be expected because they are levied on a different basis. But more than half the net expenditure of local authorities is met by the Government out of general taxation, and this proportion is increasing. The needs and resources elements of the rate support grant ensure that Government help is distributed according to local circumstances, and the domestic element has reduced the impact of the rise in rates on householders. Those with low incomes have had their rates substantially reduced by rebates.