§ Mr. Maclennanasked the Secretary of State for Scotland whether, in determining the base rate for calculations under the formula specified in clause 4 the Abolition of Domestic Rates, Etc. (Scotland) Bill for the determination of the non-domestic rate, he intends to disregard any rate increase which may have been levied by local authorities following the imposition of rate support grant penalties.
§ Mr. AncramMy right hon. Friend has the power, under the provisions of clause 3(5)(a)(ii) of the Abolition of Domestic Rates, Etc. (Scotland) Bill, to prescribe a base 387W rate for a local authority in respect of the financial year 1988–89. In considering whether and in what cases to exercise this power, he will he able to take into account, among other things, the extent to which the rate which any local authority have determined for that year may have been inflated to take account of its liability to pay grant penalties.