Rate Support Grant

Part of the debate – in the House of Commons am 12:00 am ar 20 Rhagfyr 1973.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Mr Denis Howell Mr Denis Howell , Birmingham Small Heath 12:00, 20 Rhagfyr 1973

I do not think that there is, but to the extent that there is any validity in that point, I shall try to show that we cannot have the cuts which the Government are imposing on local government without considerable consequences upon the rates. I am trying to discover what Government policy is. Since I suspect that Ministers do not know, there is not much chance of the rest of us finding out.

I come to what the Chancellor of the Exchequer said on Monday, 17th December, when making his original statement. He said that we were to have these mammoth cuts in local government expenditure and that it would be done without any unemployment of staffs in local government. I shall not burden the House with the quotation. I am sure that hon. Members will take it from me.

We are told that the astronomical sum of at least £180 million is to be cut off the agreed expenditure of local authorities next year. The right hon. Gentleman probably will put figures to the percentages that he gave us—20 per cent. off capital and 10 per cent. off most revenue items. According to the Chancellor of the Exchequer, these astronomical cuts will be made without any unemployment and without putting up the rates one penny. That is Government policy. Those are the three authentic statements. It is a nonsense. It is unattainable.

By far the biggest portion of local authority expenditure cannot be cut because it is statutory. It means that we are discussing £180 million of cuts which cannot come out of the employment or payment of teachers if we are not to have unemployment and which cannot come out of the police service which is statutory. It means that the local government services to which these astronomical cuts can be applied are very limited in extent.

If we are to have no unemployment, what will happen is that, for example, the various baths departments round the country will sack no baths attendants, the attendants will continue to turn up at the baths, but there will be no money to heat the water in which members of the public might wish to swim. That is the sort of absurd situation in which local authorities will now find themselves. The area of choice available to the local authorities is extremely limited.