Local Government

Part of the debate – in the House of Commons at 12:00 am on 28 April 1976.

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Photo of Mr Timothy Raison Mr Timothy Raison , Aylesbury 12:00, 28 April 1976

I stand rebuked, Mr. Speaker. I know that you will be as austere as ever.

Local government is important because our political system is based on a true democracy. But at a time when power over the Government's economic policy is increasingly being taken out of the hands of the elected body, it is particularly important that we should retain at local level an additional form of true democracy. Local government is therefore vital. If we believe that, local elections are equally vital.

I hope for a high turnout, whatever the result, and for an electorate which is prepared to cast its vote on local as well as national issues. As realists we must recognise that the latter looms large. The metropolitan and non-metropolitan district elections are also important because they mark a stage in the development of local government. They are taking place in the new authorities created by the 1972 Act.

The shaking-down period is largely over and we are at the stage when we can move on to consultation and the real advantages which can be derived, perhaps particularly in the strong non-metropolitan district councils but also elsewhere. In many parts of the country —in my own county of Buckinghamshire, for example—I believe that the bigger districts will be able to show the advantages of their greater clout, to use the fashionable word, compared with the old district councils. I think that a number of the metropolitan districts will be able to deal more effectively with, for example, housing within their new boundaries.

It is true that in time there may need to be further adjustment of the pattern of local government. Most of us recognise that the final decision about the allocation of planning powers have yet to be taken, and that perhaps in time we should look at the work of the metropolitan counties, the Greater London Council and so on. But the need now, as I believe the country recognises, is to get on with the job.

What is the background to that job? Inevitably, it is the public expenditure situation and above all the desperate condition of the pound. We know that local government is a large ingredient in public expenditure. For that reason it is legitimate to say that public expenditure is bound to dominate discussion of local government at present.

It is tempting to say that public expenditure is out of control. Indeed, I have said that myself, but it is not quite accurate, because what has happened is that this Government have deliberately engineered a vast expansion of public spending since they came to power in February 1974. As I think most of the country now recognises, it was an utterly irresponsible expansion for which we shall pay the price for years to come, but it was a deliberate expansion and in that sense it was controlled by Labour politicians rather than being out of control. It was a shameful episode in our politics.

The result of the refusal for so long to face the economic crisis can now be seen in all sorts of ways. It can be seen in the cuts and curtailments, such as they are, which are now being made, although they are sometimes cloaked. An example is the increase in public housing rent of about £1 a house per week which we are likely to see next year. It can be seen above all in our appalling public sector borrowing requirement, which is roughly equivalent to the total cost of our education and health service put together. The need to curtail public spending is the overriding fact in local government. It has led, under pressure from our side of the House, to the introduction of cash limits for local government. It has also led, although to varying extents, to local government looking more critically at its own spending. The result is that rate increases are down overall compared with last year. After two horrendous experiences in many parts of the country, this year is not so bad, particularly in the districts where the elections are taking place. Some have held over from last year money which they were able to keep in the till.

The fact remains that the increases are still very large in many parts of the country by any normal standards. The overall amount may be in single figures, although that is not very creditable, but outside the cities the bill for ratepayers, including the water rate is up by about 15 per cent.; according to the Chartered Institute of Public Finance and Accountancy figures. It is a grim picture, even if the amounts are lower than the£40,£50 and£100 of previous times.