HC Deb 04 February 1981 vol 998 c284
15. Mr. John Hunt

asked the Secretary of State for the Environment what representations he has received regarding the effect of the rate support grant settlement on the London borough of Bromley.

Mr. King

My hon. Friend has written to me on this subject. I have also received a letter from my hon. Friend the Member for Chiselhurst (Mr. Sims), and my Department is engaged in correspondence with the borough council on a detailed aspect of the calculation of block grant.

Mr. Hunt

Is my right hon. Friend aware that Bromley has a long and proud tradition of prudent housekeeping and steady rate levels? Is he further aware that because of his rate support grant settlement there is now talk of a 30 per cent. rate increase next year? Should not local councils which have always followed sound Conservative policies be rewarded and encouraged, rather than penalised in this way?

Mr. King

As I sought to explain to the House earlier, there is a problem for London this year. In previous years its share of grant has increased from 13.3 per cent. to 17 per cent. of the national share. That means that other authorities in different parts of the country had their share correspondingly diminished. On an assessment of need, we thought that the shift of grant was excessive. That resulted in a shift back of the grant. The grant for London is still at a high level in historic terms, but I appreciate that this year it poses problems for a number of London authorities. I recognise the difficulties of Bromley, and I note the remarks of my hon. Friend about the efforts that it has made to economise in the past.

Mr. Speaker

I regard that as a constituency question.