§ 2. Mr. Marksasked the Secretary of State for the Environment what guidance 175 he has given to new local authorities in estimating their expenditure for 1974–75.
§ The Minister for Local Government and Development (Mr. Graham Page)The main lines of estimates by the new authorities will evolve from the programmes they inherit from their predecessors. They have been advised of the need for restraint in the rate of growth of expenditure to which my right hon. Friend the Chancellor of the Exchequer referred on 21st May.
§ Mr. MarksIs it not time that Parliament and the public had more information about the basis of negotiations which, presumably, are now taking place? Is it sufficient to publish a scrap of paper in September about the rate support grant? Is this open government?
§ Mr. PageThe programme is one of negotiations with the local authority associations, which are taking place at present. The associations have been warned that the rates support grant will be fixed on the basis that the local authorities will heed my right hon. Friend's circular about restraint in spending. The present intention is to give local authorities provisional notice of their grant in January, subject to the approval of the House on the rate support grant order, and also on the basis of forthcoming legislation which the Government hope to present to the House early in the next Session.
§ Mr. Hall-DavisHas my right hon. Friend taken steps to ensure that figures are available in reasonable detail to enable comparisons to be made of the numbers employed in local government after 1st April 1974 with those employed before that date?
§ Mr. Denis HowellIs it not already clear that, no matter how restrained local authorities are, the new local government organisation which is being set up will be extremely expensive and will in many cases duplicate administration? Adding to that the tremendous inflationary cost to local government this year, what action do the Government intend to take now to protect the interests 176 of the ratepayer, having regard to phase 3?
§ Mr. PageI must ask the hon. Gentleman to await our proposals, which will be contained in legislation, but we have that very much in mind. I do not think that the increased expenditure results from local government reorganisation. It comes from the desire for greater services in local government.
§ Mr. Cyril SmithWhen the Minister issues instructions to local authorities on the grants available, will he take particular note of the problems of south-east Lancashire in relation to reports, not yet published but widely referred to in the national Press, about the "nine worst towns" in England? Some of us do not agree with the conclusions arrived at in this respect. Nevertheless, the report calls for a great deal of Government expenditure to raise the standard of these local authorities. When the Minister speaks in terms of the grant for next year will he take into account the needs of those local authorities in terms of public expenditure?
§ Mr. PageThe Government are committed to giving particular consideration to older cities with problems of reviving their city centres.