HC Deb 29 January 1974 vol 868 c91W
Mr. McBride

asked the Secretary of State for Wales to what extent, after consultation with the Welsh section of CBI, he has assessed the effect of the increases proposed in business and industrial rating of between 20 per cent. and 30 per cent., bearing in mind that 90 per cent. of firms operating in Wales employ fewer than 250 people and more than 70 per cent. of these firms are employing fewer than 100 people; and, in view of the importance of this matter, if he will make a statement.

Mr. Peter Thomas

It is not yet possible to say what rate increases will be faced by business and industrial ratepayers in the next financial year, since the precise figures for each area will depend on rate-fixing decisions by the local authorities. I have received a letter from the CBI on this matter, and a reply will be sent to it as soon as possible.

Mr. McBride

asked the Secretary of State for Wales if, having considered the implications of the proposed 9 per cent. increase in local authority domestic rating in Wales, he will estimate the extent to which local authorities in Wales will be required to reduce or eliminate public services.

Mr. Peter Thomas

The rate support grant settlement for 1974–75 should avoid any diminution in overall standards of services, while making it possible for authorities to hold domestic rates to a maximum increase of about 9 per cent. This figure assumes that local authorities achieve the savings in expenditure which the Government have asked for.

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