§ 28. Mr. Ridleyasked the Chancellor of the Exchequer whether he will refer the increase in local authority expenditure to the National Economic Development Council.
§ Mr. BrookeNo, Sir. But it is open to the Council to consider any subject it thinks relevant to the economic performance of the country.
§ Mr. RidleyIs my right hon. Friend aware that local authority spending on revenue account is estimated to be going up by 7 per cent.? How can he square that with the increase expected in the national product of only 2½ per cent.? Is it not time that the two things were brought into line?
§ Mr. BrookeOf that 7 per cent. about 4 per cent. was allowed in regard to relevant expenditure in the 1960 negotiations on the general grant 18 months ago, and the rest is largely due to subsequent increases in rates of pay and prices. The future rate of growth of expenditure, certainly over the general grant field, will, of course, be considered and discussed in the general grant negotiations due to take place between the Government and the local authorities later this year.