and mains which are assessed on one-fourth of their rental in these five burghs and on gross rental in burghs under the Burgh Police Acts and (2) Glasgow tramway lines which are assessed on gross rental for certain burgh rates. It will be observed therefore, that variations also occur in the basis on which burgh rates are levied in different burghs.

The Bill provides that all local rates under Public General Acts will be levied upon the same basis. Houses and shops, which form the preponderating class of rateable subjects, will be assessed on gross rental and certain other classes of subjects will be assessed on a net rental arrived at by giving effect to the percentage deductions specified in the First Schedule, which will apply equally to counties and to burghs. In arriving at the percentages, account has been taken of the deductions allowed for both parish and burgh rates and the proposed deductions have been adjusted to houses and shops being assessed on gross rental. In view of the wide variations in the deductions allowed under the existing system and the proposed extension of deductions to county rates which, except as regards agricultural subjects, are now levied on gross rental, the introduction of a scale, universally applicable, cannot affect all areas and all classes of property in the same way and to the same extent. The scale of deductions specified in the First Schedule, however, has been designed to produce a minimum disturbance in the incidence of local rates as between the different classes of property, combined with a minimum of labour in the practical application of the scale.

The deduction, if any, to be allowed in respect of a particular property will, in every case, be determined by the valuation assessor and the amount of the deduction and the net rental will be shown in the valuation roll. An appeal against his decision may be taken to the ordinary Valuation Appeal Courts.

Provision is made in the Bill for adapting and, where necessary, modifying the scale of deductions in the case of rates leviable under Local Acts.

Tables are appended giving the estimated gross and assessable rentals of the various classes of property under the existing system and their assessable rentals as they would be under the schedule of deductions specified in the Bill. (Appendices I and II).

The rentals used for the purposes of the comparison are for the year 1923-24 and are based upon (1) special returns obtained from representative areas embracing three-fourths of the whole valuation of Scotland; (2) returns made for the purposes of the Agricultural Rates Grant; (3) information supplied by the Assessor of Railways with respect to railways, tramways, and other undertakings valued by him and (4) information supplied by certain County and Burgh Assessors.

A Table is also appended showing the estimated effect of the Schedule of deductions on the incidence of rates borne by the various classes of property (Appendix III). With regard to this Table, it has to be observed that the assessments (excluding water rates) shown as paid at present by each class of property have been arrived at by

allocating (1) the amount raised for poor and education rates in burghal and landward areas respectively according to the parish assessable rental of each class, and (2) the amount raised for burgh rates and for county rates according to the burgh and county public health assessable rental of each class. The assessments shown as payable under the Bill have been arrived at by re-allocating, according to the proposed assessable rental for each class of property, the total assessments at present raised in burghs and in counties, with an adjustment in respect of the transfer of £50,000 of education rates from landward to burghal areas referred to in page 3. The figures arrived at by the foregoing method are therefore averages and represent the result that would obtain if a uniform rate per £ were levied in all burghs and in all counties. The actual result of the

Bill on the incidence of rates in any particular area or on any particular class of property will be affected by the extent to which the rental distribution of the area and the assessments levied therein differ from the averages for Scotland.

The following is an estimate of the overturn of rates as between the various classes of property that will arise in consequence of the deductions specified in the Schedule. For purposes of comparison figures are also given showing the corresponding overturn that would take place if all local rates were levied (a) on gross rental (agricultural subjects being rated on 50 per cent. of rental) and (b) on the present rentals for public health general assessment. (Under the latter method rates would still be levied on a different basis in burghs and in counties.)

It will, of course, be understood that the percentage overturn in individual areas will vary from the percentages shown above, as these represent the average percentage variation for Scotland.

SCOTTISH OFFICE,

April, 1926.

* Excluding subjects which are exempt from rates, but including Government property in respect of which a Treasury contribution is made in

APPENDIX II. ASSESSABLE RENTAL, 1923-24, AND UNDER BILL.

356,000 1.93 51,000 0.58 (a)478,000 234,000 1.27 435,000 4.93 125,000 0.45

1.73

105,000 0.91

521,500 1.89

73,500 0.67

30

Water Works

Sewers and Sewerage

(e) Owners 25 per cent., Occupiers 75 per cent.

650,000 5.60

280,000 1.02

520,000 4.73

20

APPENDIX III.-ESTIMATED EFFECT OF THE BILL ON THE INCIDENCE OF RATES BORNE BY VARIOUS CLASSES OF PROPERTY.

Sewers and Sewerage Works

0 19 23

0 18 7

By Harrison and Sons, Ltd., 44-47, St. Martin's Lane, W.C.2.

Printed under the authority of HIS MAJESTY'S STATIONERY OFFICE

(B 34/3240)Q

* Cemeteries are at present exempt from local rates.

† Allowance made for transfer of £50,000 of education rates from landward to burghal areas.

See page 3.