HC Deb 09 January 1985 vol 70 cc777-8
14. Mrs. Clwyd

asked the Secretary of State for the Environment how many authorities are now likely to suffer grant holdback in 1984–85.

Mr. Patrick Jenkin

One hundred and thirty-nine local authorities in England are incurring grant holdback on the basis of their budgeted expenditure. The final number, which I hope will be fewer, will depend on their outturn expenditure.

Mrs. Clwyd

Why does not the Secretary of State follow the advice of the Audit Commission report and end those iniquitous penalties, which cause instability and higher rates to the tune of £400 million a year?

Mr. Jenkin

We do not accept the view of the Audit Commission's report, and at the moment that matter is before the Public Accounts Committee. Many of the Audit Commission's recommendations were sensible, and we are acting on some of them. However, we do not accept some of the figures and reasoning. The matter is before the Public Accounts Committee, and no doubt will come before the House in due course after the Committee has reported.

Mr. Yeo

Is my right hon. Friend aware that there is widespread support for his efforts to reduce the central Government contribution to very extravagant local authorities, but that equally, there is great dismay in counties such as Suffolk, which face the prospect of holdback although they are spending substantially below the GREA level?

Mr. Jenkin

I know that my hon. Friend will welcome the fact that—I am speaking from memory—Suffolk Suffolk was one of the authorities which received the biggest increase in the target over this year's budget, which should have made it much less likely that it will exceed the target and so incur penalties. Our target methodology for this year for low-spending shire counties has been widely welcomed.