HC Deb 18 October 1982 vol 29 cc7-8
10. Sir Anthony Meyer

asked the Secretary of State for Wales what representations he has received from local authorities in Wales regarding the level of rate support grant for the coming financial year.

Mr. Nicholas Edwards

I shall be discussing the Welsh local authority associations' representations with them at the Welsh Consultative Council on local government finance meeting on Wednesday.

Sir Anthony Meyer

In those discussions, will my right hon. Friend take every opportunity to point out to the local authorities that the Government's even greater than expected success in bringing down the level of inflation gives them no pretext whatever for unwarranted increases in their projected expenditure, but, on the contrary, imposes an obligation upon them to contribute to the process of reducing inflation by keeping their costs below that level, if possible?

Mr. Edwards

I shall point that out. In addition, I shall point out to the local authorities that the basis upon which they have been making their planning assumptions so far now looks to be on the high side. It now appears that inflation may be a good deal lower than they at first thought.

Dr. Roger Thomas

In the light of the Government's emphasis on community care through local authority social services, may we expect such expenditure to be defended by Ministers more rigorously than in the past?

Mr. Edwards

The hon. Gentleman should be aware that expenditure allocations made by local authorities are matters over which I have no direct control. They have the choice. However, I made it clear to the local authorities that we think that these are important areas of responsibility.

Mr. Wigley

Is the Secretary of State aware of the great fear in local authorities in Wales that a reduction in the rate support grant from 72½p in the pound to 70p in the pound would mean a rate increase of 11p? Will he make it clear to the people of Wales that if a rate increase of 11p is necessary for that reason, it is because of the Government's action in cutting back support, not because of any local authority profligacy?

Mr. Edwards

I do not accept the figures that have been presented. The Government believe that if local authorities proceed on the basis that was set out in my RSG statement there is no reason why we should have substantial rate increases in the coming year on the scale that we have had in recent years.

Mr. Hooson

When my right hon. Friend discusses the rate support grant with local authorities, will he ensure that a much greater allowance is made this year for the sparsity factor that affects rural counties?

Mr. Edwards

My hon. Friend will be aware that we have detailed discussions with the local authority associations about the formulae that are used. This topic has been looked at frequently in the past, and I have no doubt that it will be looked at again on many occasions.