Local Authority Expenditure (Hansard, 5 November 1979)

§ 3. Mr. Wigley
asked the Secretary of State for Wales what guidelines he has issued to local authorities in Wales in relation to their proposed expenditure for 1980–81.

§ Mr. Nicholas Edwards
When the Government took office they asked local authorities to reduce their expenditure in the current financial year by 3 per cent. They are now being asked to make a further reduction of about 1 per cent. in 1980–81. No guidelines have been issued on how this reduction should be achieved.

§ Mr. Wigley
Is the right hon. Gentleman aware that over the past four or five years counties such as Gwynedd and the right hon. Gentleman's own county of Dyfed have suffered considerable reductions in resources, and as a result have had to cut back on services because of the change in the rate support grant formula that has favoured inner city areas? Does he accept that it is difficult for such authorities to cut back further without unacceptably eroding the level of services that are maintained? Will he press his colleagues in the Department of the Environment to ensure that any change or modification to the rate support grant formula takes into account the circumstances faced by the counties that I have mentioned?

§ Mr. Edwards
I am well aware of the move away from the counties that has taken place in the past few years, and of other special factors which affect rural counties. I can assure the hon. Gentleman that they will be taken fully into account in the announcement that will be made about rate support grant in the near future.

§ Mr. Rowlands
Whatever savaging or mauling the Government embark upon in arriving at the rate support grant settlement at the end of this month, will the right hon. Gentleman give a categorical assurance to Welsh domestic ratepayers that the domestic support of 36p in the pound, which has stood for the past few years and which has been a vital support to the average working class domestic ratepayer, will be fully maintained in any new settlement?

§ Mr. Edwards
I cannot anticipate the statement that will be made in the next couple of weeks. I can assure the hon. Gentleman that I am aware of the importance of this matter and of the gearing effect that would be felt on Welsh rates if proper account were not taken of it.

§ Mr. Alan Williams
Does the right hon. Gentleman realise that we see little encouragement in the fact that he lost the vital battle to sustain regional aid for Wales? Therefore, we have little confidence in his ability to maintain our share of the rate support grant. Does he realise that if he fails us yet again it will mean higher rates, lower standards of service and fewer local government jobs? We shall judge him by his success. Is he aware that already there is a danger that he is proving to be a lightweight in Cabinet but a burden which the people of Wales cannot afford to carry?

§ Mr. Edwards
After all that not very convincing rhetoric I am glad that the right hon. Gentleman is at least prepared to await the announcement that we shall be making about the rate support grant. I am happy to leave these matters to the judgment of the people of Wales. I remind the right hon. Gentleman that about 94 per cent. of the working population of Wales is covered by our regional measures as against 25 per cent. in the United Kingdom as a whole, which hardly suggests that we are not concerned about the particular needs of Wales.