Part of the debate – in the House of Commons am 12:00 am ar 20 Rhagfyr 1973.
Thank you, Mr. Deputy Speaker.
I now turn to what will be carried over, and directly relate it to the order. The local authorities contend that £164 million ought to have been added to the rate support grant orders, which must be carried over to next year's expenditure by ratepayers. This arises because the relevant expenditure increase for the year 1972–73 was £12 million and for the year 1973–74 it is £397 million. The local authorities say that grant offered by the Department of 58 per cent. of all local government expenditure for the year 1972–73 leaves a shortfall of £7 million, while on a grant rate of 60 per cent. for the following year there is a shortfall of £238 million. Therefore, the local authorities deduce that the ratepayers will have to find the difference between these two sums. It is a rather technical matter, but I am sure that the House will take note of what I have been informed by one of the local authority associations. That association puts the total shortfall at £164 million which must be carried over till next year.
To the extent that we fail to provide for the local authorities this year there is bound to be an increase in rates. I am told that a 1p rate produces around £60 million for the country as a whole. That being the case, the local authority associations are telling me—and I advise the House—that a 3p increase in rates is bound to be carried over to next year due to the shortfall in the expectation of the rate support grant order.