§ Mr. Christopher Priceasked the Secretary of State for the Environment if he has concluded his negotiations with local authorities on rate support grant for 1974–75; and if he will make a statement.
§ Mr. CroslandI met representatives of the local authorities on 14th March to12W discuss the Government's proposals for revising the rate support grant settlement. The details of the previous Government's settlement were set out in a White Paper (Cmnd. 5532) published in January this year. It proposed a rate support grant of £3,076 million, to be distributed according to a formula set out in the White Paper.
I consider that it would be irresponsible to alter the main elements of this settlement, given the current serious economic situation and the major problems facing the local authorities which are in the process of fixing their rates for 1974–75. I propose therefore to maintain the total amount of grant previously proposed and the division of grant as between needs, resources and domestic elements.
However, there were obvious inequities and difficulties about the proposal for variable domestic relief. It would have reduced the benefit to householders in those needy inner urban areas which were entitled to gain under the new distribution formula. After useful discussions with the local authorities I therefore propose to abandon this variable element, but to retain the same total of £446 million for domestic relief. I shall distribute this total as a flat rate of 13p in England and, having regard to its exceptional circumstances, 33.5p for Wales.
Full details of the proposed settlement have been presented in an order laid before the House yesterday. The House will have an opportunity to debate it shortly.