§ Mr. Alton
As the water workers' award may well have a spin-off effect for other public sector employees, and as the rate of inflation could well increase, how will the Secretary of State help local authorities which find that they do not have sufficient resources at the end of this year to maintain existing services?
§ Mr. King
It is becoming clear that local authorities have been considerably advantaged in the present year by the fall in inflation and interest rates. Despite an admittedly tough rate support grant settlement that reduced the rate support grant by 3 per cent., the overwhelming majority of responsible authorities are now making very low rate increases and I expect that to be maintained. I do not want to follow the hon. Gentleman in looking at every possible problem that can be dredged up.
§ Mr. Kenneth Carlisle
Will my right hon. Friend confirm that the rapid fall in the rate of inflation has enabled many councils to impose low rate increases in the coming year, which is a further proof of the success that can be achieved if we continue our fight against inflation?
§ Mr. King
I told the local authorities and delegates at that conference that I would very much prefer to see a system in which targets were not necessary. The challenge is with local authorities. Targets were introduced to try to obtain a better achievement on Government expenditure targets overall and if we were able to secure that I would be delighted to see whether it was possible to get rid of targets.