HC Deb 11 June 1980 vol 986 cc542-4
10. Mr. Lang

asked the Secretary of State for Scotland if he has any plans to meet the Convention of Scottish Local Authorities to discuss overspending by local authorities.

Mr. Younger

On 20 June I shall discuss with the convention once more the need for local authorities to reduce planned expenditure for 1980–81 to the level envisaged in the rate support grant settlement.

Mr. Lang

Does my right hon. Friend agree that the expansion of local authority staff numbers by about 14,000 in the last two years, including a 25 per cent. increase in public relations staff, represents an unnecessary and intolerable burden on the ratepayers in some areas? Will my right hon. Friend assure those authorities that the Government will not allow them to get away wish such inflationary policies with impunity?

Mr. Younger

I agree that the continued growth in local authority staffs at a time when money is not available for such expansion is very worrying. The figure for the year ending December 1979 showed that manpower in local government had increased by 2.9 per cent., in a year when everyone was supposed to cut back. It is essential that the local authorities should cut back, in the interests of ratepayers and the country as a whole.

Mr. John Home Robertson

Will the Minister desist from interfering in the day-to-day work of local authorities, which must live with real 22 per cent. inflation rather than his cloud-cuckoo 13 per cent.? Can he explain why the East Lothian district council has been stopped from building a desperately-needed community complex with its own money? That application to spend its own money has been lying on the Secretary of State's desk for seven weeks.

Mr. Younger

Unfortunately, for many years local authorities have been permitted to spend more money than the country can afford. It is our duty to make sure that they understand what the country can afford and that they get their expenditure down to that level.

Mr. Ancram

When my right hon. Friend next meets COSLA will he ask its representatives how many of its members, including the East Lothian district council, were mandated by their electors to spend ratepayers' money to support the Olympics in Moscow? Will he ask what the political complexions of these councils are and what services will have to be cut to finance these grants?

Mr. Younger

I sympathise with my hon. Friend's remarks. It is difficult to believe that local authorities are as short of money as they claim, when they appear to be able to splash money around to help the Moscow Olympics to get off the ground.

Mr. Ron Brown

One of the main problems associated with local government is interest payments. What help will the Secretary of State give to local authorities in Scotland to assist with this problem?

Mr. Younger

I can reassure the hon. Member to some extent. The rise and fall in the interest rates is automatically allowed for in the rate support grant settlement, and that gives considerable security to local authorities on that matter.