§ 15. Mr. Alec Jonesasked the Secretary of State for Wales what representations he has had from the Welsh Consultative Council on Local Government Finance.
§ Mr. Nicholas EdwardsThe Welsh Consultative Council on Local Government Finance, which I normally chair, meets regularly throughout the year to consider all financial and related matters affecting local government. The Welsh local authority associations' representatives ensure that I am fully aware of their views on all these matters.
§ Mr. JonesAre the local authorities in Wales expected, in the current financial year, to reduce their budgets by £57 million? Does this not represent about 4.8 per cent. of expenditure? How does this compare with the so-called overspend in England and Scotland? What effect is this likely to have on local authority manpower in Wales and, above all, on the services for the people in Wales?
§ Mr. EdwardsThe budgets at present show a total planned expenditure of £57 million, or 4.8 per cent., in excess of the rate support grant provision. I have told the local authorities that we are not prepared to accept overspending on that level and I have asked them to review their budgets and to submit revised budgets by 16 July. When I have those revised budgets, I shall consider whether any further action is necessary. My decision on grant witholding, if any is required, will be taken in the light of that re-submission, although I have made it clear that I shall protect those authorities that have not contributed to the expenditure excess.