Local Government Finance

Oral Answers to Questions — Local Government – in the House of Commons at 12:00 am on 23rd March 1965.

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Photo of Mr Geoffrey Rhodes Mr Geoffrey Rhodes , Newcastle upon Tyne East 12:00 am, 23rd March 1965

asked the Minister of Housing and Local Government whether he will now take action on the question of the reorganisation of local government finance, in the light of the findings of the Allen Committee; and whether he will make a statement.

Photo of Mr Julian Ridsdale Mr Julian Ridsdale , Harwich

asked the Minister of Housing and Local Government if he will now take steps to relieve the rate burden in those areas that have little industry and a high proportion of retired people.

Photo of Sir Rolf Williams Sir Rolf Williams , Exeter

asked the Minister of Housing and Local Government what steps he is taking to relieve local authorities of a further part of the burden of educational expenditure.

Photo of Mr Terence Boston Mr Terence Boston , Faversham

asked the Minister of Housing and Local Government what progress he is making with his review of the rating system; and whether he will make a statement about his specific proposals for reforming the system.

Photo of Mr Ivor Richard Mr Ivor Richard , Barons Court

asked the Minister of Housing and Local Government, whether he will now make a statement on the reorganisation of local government finance, in view of the Report of the Allen Committee.

Photo of Mr Dudley Smith Mr Dudley Smith , Brentford and Chiswick

asked the Minister of Housing and Local Government if, in view of the heavy increases in rates this year, he will bring forward early legislation to ensure a fairer distribution of this burden.

Photo of Mr Oscar Murton Mr Oscar Murton , Poole

asked the Minister of Housing and Local Government (1) whether, in view of the delay in implementing the policy of giving early relief to ratepayers by transferring a larger part of the burden of public expenditure from local authorities to the Exchequer, he will take steps to arrange for a system of grants to be made to those towns where the proportion of domestic rateable value in relation to commercial and industrial rateable values is higher than the national average;

(2) what plans he has for the alleviation of the heavy share of the rate placed on domestic ratepayers.

Photo of Mr Peter Mills Mr Peter Mills , Torrington

asked the Minister of Housing and Local Government what are his proposals about the burden of education costs which is falling on local authorities; and if he will make a statement on future Government policy in this field.

Photo of Mr William Owen Mr William Owen , Morpeth

asked the Minister of Housing and Local Government what progress has been made in his examination of the problem of local government finance; and if he will make a statement.

Photo of Mr James Johnson Mr James Johnson , Kingston upon Hull West

asked the Minister of Housing and Local Government if he will now make a statement on local government finance, in view of the urgency of the problem.

Photo of Mr Robert Elliott Mr Robert Elliott , Newcastle upon Tyne North

asked the Minister of Housing and Local Government when he will propose changes in local government finance following his consideration of the Allen Report; and if he will make a statement.

Photo of Mr Richard Crossman Mr Richard Crossman , Coventry East

With permission, Mr. Speaker, I will answer this Question and Nos. 23, 50, 55, 69, 73, 77, 86, 89, 94, 95 and 97 together.

Photo of Sir Rolf Williams Sir Rolf Williams , Exeter

On a point of order, Mr. Speaker. My Question, No. 50, is quite different from the other Questions the right hon. Gentleman proposes to answer. Would it be possible for him to answer Question No. 50 separately?

Photo of Sir Harry Hylton-Foster Sir Harry Hylton-Foster , Cities of London and Westminster

It cannot be a matter for the Chair. I have no power in this respect.

Photo of Mr Richard Crossman Mr Richard Crossman , Coventry East

The Government are pushing on as fast as possible with their examination of local government finance and the rating system in the light of the Allen Report. When it is concluded there will be no delay in announcing our plans.

Photo of Mr Geoffrey Rhodes Mr Geoffrey Rhodes , Newcastle upon Tyne East

Will my right hon. Friend bear in mind that the findings of the Allen Report indicate that the weakest members of the community are subject to a very high burden of rates—the elderly, those with relatively low fixed incomes and those men with relatively large families? Will he give sympathetic consideration to the proposals of Newcastle City Council that those boroughs with large-scale, costly redevelopment schemes in areas of high unemployment should receive special help? Is my right hon. Friend aware that this would relieve the crippling rates burden in Newcastle?

Photo of Mr Richard Crossman Mr Richard Crossman , Coventry East

The second part of my hon. Friend"s supplementary question is probably a matter of grant or subsidy rather than of local government finance. I accept what he says in the first part of the supplementary question. One of the main conclusions of the Allen Committee was that elderly people particularly who do not have their rates paid by the National Assistance—and it is estimated that half a million of those who qualify for this assistance do not apply for it—are appallingly hard hit even by a rate increase of 8d. in the £ each year. Thus, the case for rating reform is strongly substantiated.

Photo of Mr Julian Ridsdale Mr Julian Ridsdale , Harwich

Is it the right hon. Gentleman"s view that we should transfer at least part of the education burden from the rates? If so, when will this be done? Is he aware that this is causing great hardship to many grandmas and grandpas who are having to pay for the education of children of wealthy people living in urban areas?

Photo of Mr Richard Crossman Mr Richard Crossman , Coventry East

Part of our election manifesto was the transfer of the cost of teachers" salaries—or a large proportion of it—from the rates to taxation. But, as I have pointed out outside the House, this is now seen to be far too small an operation to achieve the objective required, which is shifting the balance from rates to taxation if the rates system is not to break down. Thus, a far more drastic reconstruction of the system is required.

Photo of Mr John Boyd-Carpenter Mr John Boyd-Carpenter , Kingston upon Thames

In view of the concern felt all over the country about the increases in rates this year, can the right hon. Gentleman say whether the timetable which he contemplates will enable action to be taken to prevent further similar increases next year?

Photo of Mr Richard Crossman Mr Richard Crossman , Coventry East

That will depend on a great many things outside my Department. It is a question which should be put to my right hon. Friend the Lord President of the Council, or, indeed, to the Leader of the Opposition, for it will depend on the progress we make in our legislative programme this year.