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Local Authorities (Derating Compensation)

Volume 414: debated on Thursday 11 October 1945

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asked the Minister of Health if he is aware that, as a result of the operation of those Sections of the Rating and Valuation and Local Government Acts, 1929, which relate to the derating of industrial hereditaments, the Acton Borough Council loses in rate revenue for the year 1945–46 £131,531, a sum equal to a rate of 3s. 2d. in the £; and, in view of the burden thereby imposed upon the general body of ratepayers in industrial areas, he will repeal or amend this legislation or indicate what steps he will take to assist local authorities whose revenues have suffered loss there from.

I understand that the figures quoted by my hon. Friend are correct. Assistance to local authorities by way of block grant was designed to counter the general effect on rates of all the provisions of the Local Government Act, 1929, including the de-rating provisions. It is not proposed to amend those provisions, but it is contemplated that during the current and two following years an additional £10,000,000 each year will be added to the block grant and in the meantime its future scope will be reviewed.