HC Deb 15 July 1975 vol 895 cc1254-5
10. Mr. Leslie Huckfield

asked the Secretary of State for Education and Science whether he will now make a statement on the effects of public expenditure reductions on his Department's capital spending programme.

Mr. Mulley

I hope shortly to announce capital programmes for 1976–77.

Mr. Huckfield

I accept that answer from my right hon. Friend but does he appreciate that many local authorities have still not worked out in detail the effects of the last round of public expenditure cuts? Does he now feel able to say something about the effect on his Department's spending of the proposed cash-limits philosophy?

Mr. Mulley

That would be a rather tall order in answer to a supplementary question. The idea of the cash limit is simple—namely, that if local authorities pay wage increases beyond the sum agreed in the voluntary pay policy they will suffer deductions from the rate support grant which they receive in respect of those payments.

Mr. Peter Walker

In terms of total public expenditure does the Secretary of State expect teachers to obtain the full £6 increase in the coming year? If so, what will be the effect on public expenditure?

Mr. Mulley

I cannot say what the position will be next year. The settlement date next year will not be until 1st April. It will be a matter for negotiation. I would expect the teachers—I may be wrong—to ask for the full £6. We shall have to wait and see.

Mr. Arthur Lewis

When my right hon. Friend considers his proposals, will he bear in mind the difficulties already confronting stress areas, particularly areas of grave housing shortage, areas with large immigrant populations and areas where there is a shortage of teachers? Does he appreciate that in some areas children are unable to receive full-time schooling? Will he ensure that such areas receive additional help and that there are no cuts in Newham, Haringey and similar areas?

Mr. Mulley

My hon. Friend knows that in working out allocations allowance has been made for the factors he has mentioned. It is too early to know whether other authorities will require their full quota, but if they do not this should give the opportunity to certain authorities to recruit the necessary additional teachers.

Mr. Lane

Can the Secretary of State confirm that depite the total cuts he will continue to discriminate positively in favour of deprived urban areas, which on the capital side contain many inadequate schools overdue for replacement or improvement?

Mr. Mulley

I am well aware of these problems. Our policy is to continue to help as far as we can, especially in such areas as the hon. Gentleman has outlined.