§ 16. Mr. Hal Millerasked the Secretary of State for the Environment if he will re-examine the system of block allocation of capital payments for locally determined schemes as laid down in Circular 2/70.
§ Mr. John SilkinNo, Sir.
§ Mr. MillerThe right hon. Gentleman will be aware of Circular 2/70, but will he confirm that the consultative council that his right hon. Friend announced yesterday will seek to take rather more effective action to ensure the Government's ability
to monitor the total level"—I am quoting from the circular—and main trends of expenditure",and will for once get on top of the problem of controlling public expenditure by local authorities? I have in mind in particular the wasteful procedures adopted at the end of the financial year when there is a trawl round the various councils and departments in an effort to spend the whole sum before the end of the year.
§ Mr. SilkinI think that the hon. Gentleman is referring to Circular 86/74. That is the circular which brought Circular 2/70 up to date after the reorganisation of local government. I hasten to say that I am not making any point about this because the principle remains entirely the same. It is the central Government who decide the economic constraints on the locally determined sector. Within that policy we have tried to give as much freedom as possible to local authorities within each county area to make their own decisions on how the money should be spent. I think that my right hon. Friend the Secretary of State, as long ago as 26th February, drew attention to certain 432 schemes—he did not mention particular cases—which might be considered somewhat extravagant. Of course, he went on to say that a number of buildings were perhaps necessitated by local government reorganisation. We shall watch the whole question of local authority public expenditure. Indeed, it is vital that we should do so.