Rate Support Grant

Part of the debate – in the House of Commons at 12:00 am on 20 December 1973.

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Photo of Mr Graham Page Mr Graham Page , Crosby 12:00, 20 December 1973

The Local Government Act 1966, under which the orders are made, requires the orders to be accompanied by explanatory reports by my right hon. and learned Friend the Secretary of State. The reports are House of Commons Papers Nos. 47 and 48. They were duly laid before the House at the same time as the orders were laid. The orders and the reports deal with the two financial years 1972–73 and 1973–74. Under the Local Government Act 1966 the main grant settlement was made every two years, but the procedure was amended for 1973–74 by the Local Government Act 1972, and only that year was covered. The new arrangement is the precursor of the grant settlement which we are proposing in the Local Government Bill which is now before the House.

To deal with these orders is perhaps a little confusing. I shall try to put on record as succinotly as possible exactly what we are dealing with in each order and how it comes about. In 1970 we debated the Rate Support Grant Order 1970, which fixed the amount of grant for 1971–72 and 1972–73. The year 1971–72 was wound up by the Rate Support Grant (Increase) Order 1972 which we debated last year. So this year in the (Increase) (No. 1) Order we are dealing only with the year 1972–73. Last year we debated at the same time the Rate Support Grant Order 1972, which fixed the amount of grant for 1973–74 only. We are now dealing with the increases necessary for that year in the (Increase) (No. 2) Order.

I had hoped—and I know that the hon. Member for Birmingham, Small Heath (Mr. Denis Howell) knew of my hopes—that it would be possible to publish before now a white paper giving the details of the rate support grant settlement for 1974–75. I can assure the hon. Gentleman that we had a White Paper printed. It has been delayed as a result of the expenditure reductions announced by my right hon. Friend the Chancellor of the exchequer on Monday.

The debate, unlike last year's debate, is only on the increase orders. We are not debating at the same time the main Rate Support Grant Order for 1974–75. We shall conclude the main settlement as soon as possible after further discussions with the local authorities. In fact, those discussions started this week.

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