I move: "That the Bill be now read a Second Time." This is a short technical Bill. The background to it is that in their 14-point plan announced before the recent General Election the Government stated their intention to reduce local rates by transferring on a phased basis from local to central taxation the burden of health charges on local authorities and the cost to them of local authority housing subsidies.
On 30th March, the Government announced that in the present financial year, 1973-74, the rate to be levied by each local authority for health services and local authority housing subsidies could be reduced by 25 per cent as compared with the rates levied for these purposes in 1972-73, this being the first phase in the total transfer of costs to the Exchequer over a four-year period. At that stage, however, 11 county councils and three urban district councils had already adopted estimates of expenditure and determined rates in the pound for 1973-74.
Under existing law, there is no way in which a local authority can reduce a rate which has been determined in accordance with the statutory procedure laid down. In order that the ratepayers in those areas where rates had already been determined might be enabled to benefit from the reductions announced by the Government it was necessary that a legislative provision be made enabling the relevant local authorities to levy an amended rate. The Bill which I have introduced is, as I have already said, a technical measure designed solely to validate any modified rates in the pound adopted by the small number of relevant local authorities subsubsequent to the announcement of the Government's decision. I commend the Bill to the House.