HC Deb 09 November 1962 vol 666 cc102-3W
Mr. Iremonger

asked the Minister of Housing and Local Government and Minister for Welsh Affairs if he will circulate in the OFFICIAL REPORT the reply he has made to the submissions of the United Ratepayers' and Residents' Campaign made in a letter to the Prime Minister of 10th October and the enclosed resolution.

Sir K. Joseph

I did not reply to the letter addressed to my right hon. Friend. My reply to a similar letter addressed to me was as follows19th October, 1962. Thank you for your letter of 13th October informing me of the terms of the resolution adopted by a meeting of the various bodies listed at the head of your notepaper on 29th September. There was a full inquiry into the rating system 5 years ago. Since then rates have, it is true, increased—but taxpayer's contributions to them have kept pace. More than half the cost of local services, including education, is paid for by the taxpayer. Since then also industry has lost its 75 per cent. derating, and from next April will be bearing a much increased share of the net rate burden—to the relief of householders. It would be easy to promise another inquiry. Any Minister in my position, aware as he is bound to be of the unpopularity of rates in some quarters, would be only too pleased if any practicable alternative were in prospect. But it would not be honest of me to pretend that any such prospect exists—nor to support an inquiry which would in my view only be able to go over old ideas which have been rejected for good reasons time and again. You rightly recognise that one of the only ways to cut rates would be to transfer some of the obligations of local authorities to the central government. Two results would follow. Taxes would be raised; and local government would bitterly resent the removal of yet more of their much attenuated responsibilities. This is not just a question of the attitude of local councillors: it affects the standing and quality of local government—whose integrity and calibre is vital to the daily life of the citizen. I am deeply concerned to look for ways in which rates can be lessened as a burden—but I do not believe that there are panaceas or alternatives which a new enquiry at the moment could find. The proposal that Schedule A income tax for owner-occupiers should be abolished forthwith is a matter for the Chancellor of the Exchequer and I note that a copy of the resolution has been forwarded to him.