§ Mrs. Knightasked the Secretary of State for the Environment if he is now able to make a statement to announce what action the Government propose to 95W take to alleviate the burden on the domestic ratepayer in 1973–74 arising from revaluation.
§ Mr. Rippon,pursuant to his answer, OFFICIAL REPORT, 5th March 1973; Vol. 852, col. 18–19, circulated the following statement:
My right hon. Friend has today announced that the Government will be giving some additional help to domestic ratepayers facing large increases in their rates due to revaluation.
Higher expenditure for better services or to pay for past inflation will increase rates in some areas although in other areas there may be decreases. The Government have already given a higher rate of grant than ever before to reduce the average rise in rates and in particular to ease the burden on the domestic ratepayer. However, differences in rates in different areas and indeed from year to year in the same area are inherent in the system and reflect to a considerable extent local decisions. The Government believe that increases of this nature ought properly to fall on the local elector.
Pressures on expenditure may well be higher in some areas than in others but this problem is not limited to the present year or to the large cities which have made special representations about it. It needs to be solved in the context of the review of local government finance and in particular in the distribution of rate support grant. The Government will be entering urgently into further discussions with the local authority associations on this subject.
This year, however, the effect of revaluation is superimposed on the normal variations in rates because of expenditure. Revaluation ensures that rates fall more fairly on the individual. Some have been paying more than their share but others have been paying less than their share. However, the 10-year gap since the last revaluation will lead to substantial increases for some domestic ratepayers which may cause difficulties if imposed in a single step. The Government will, therefore, meet half the cost of any increases above 10 per cent. in domestic rate bills in so far as they are attributable solely to the effects of revaluation. 96W Local authorities will be asked to reduce rate demands where appropriate on their ratepayers and the Government will reimburse the cost which cannot be estimated precisely but is expected to be at least £10 million. A Supplementary Estimate will be introduced at the earliest opportunity and meanwhile the Contingencies Fund can be used if necessary.
A circular will be issued to local authorities within a few days explaining how the relief is to be calculated.
A proportionate increase of £1 million will be added to rate support grant in Scotland for the relief of ratepayers there.
§ Mr. Michael Cocksasked the Secretary of State for the Environment what general measures of help he now intends to give Bristol following recent representations over rate expenditure.
§ Mr. RipponI would refer the hon. Member to the reply given to a similar Question from my hon. Friend the Member for Birmingham, Edgbaston (Mrs. Knight) earlier today.
§ Mrs. Doris Fisherasked the Secretary of State for the Environment whether he will give special consideration to the long-term problems of the cities in the forthcoming Local Government Finance Bill.
§ Mr. RipponI would refer the hon. Member to the reply given to a similar Question from my hon. Friend the Member for Birmingham, Edgbaston (Mrs. Knight) earlier today.
§ Mr. Ashleyasked the Secretary of State for the Environment (1) when he intends to announce measures he is taking to relieve the burden falling on domestic users in large cities because of revaluation;
(2) if he will give some measure of domestic rate relief to all county boroughs where the percentage increase in the domestic rate burden directly attributable to revaluation is greater than 5 per cent.
§ Mr. RipponI would refer the hon. Member to the reply given to a similar Question from my hon. Friend the Member for Birmingham, Edgbaston (Mrs. Knight) earlier today.