§ Mr. Greenwayasked the Secretary of State for the Environment what information he has about regional 272W variations in levels of rates, and especially between London boroughs and county councils; and if he will make a statement.
§ Mr. Chope[pursuant to his reply 12 January 1987, c. 37]: Comparisons of rate poundages between London and the rest of the country are complicated by the special arrangements for the payment of block grant in London and by the separate London resource equalisation scheme. Average rate poundages in London at 168p are therefore lower than the average rate poundage in the non-metropolitan areas—211p. Average domestic rate bills in London are, however, higher at £485 than in the non-metropolitan areas—£377—because of the higher rateable values in London. The Government do not accept that it is sensible to expect ratepayers in different parts of the country to pay widely different prices for equivalent levels of local services. Our proposals for a community charge will remove this anomaly.
For business ratepayers, large and unpredictable changes in rate bills from year to year, unrelated to the value of services provided, may be more damaging than the absolute level of rate payments. Our proposals for a uniform business rate poundage, linked to inflation, will allow businesses to plan with more confidence.