asked the Minister for the Environment if any decision has been made to end the practice which has been in operation since 1977 whereby the Exchequer pays all money to local authorities in lieu of domestic rates; and if he will make a statement on the matter.
Written Answers . - Domestic Rates .
494.
: As a departure from the situation that existed since 1977, I have decided to restore freedom to local authorities to determine their rate poundages for 1983. A total of £163.5 million, which includes an additional £25.5 million made available in the budget, is being provided by the Exchequer for the grant in relief of rates on domestic and certain other properties. The question of how this provision compares with the rate reliefs local authorities themselves will give on domestic property will depend on the level of rate increases local authorities decide to adopt for 1983, taking account of income from other sources such as charges for services.
I am confident that my approach to this matter will enhance the discretion of local authorities in regard to their finances and will therefore considerably strengthen local democracy.