HC Deb 24 February 1993 vol 219 cc870-1
5. Mr. Corbyn

To ask the Secretary of State for the Environment what is the proportion of local government spending in Greater London provided by central Government in the current year; and what was the figure in 1979–80.

The Parliamentary Under-Secretary of State for the Environment (Mr. Robin Squire)

The proportion of estimated local government expenditure in Greater London financed by central Government grant in 1992–93 is 68 per cent., and a further 21 per cent. is financed from redistributed business rates. The earliest year for which broadly comparable figures are available is 1981–82, when central Government met 44 per cent. of local government expenditure.

Mr. Corbyn

Does the Minister accept that London has a number of serious problems that arc not sufficiently met by central Government funding? Some 62 per cent. of Britain's homeless people live in London, there are high and rising levels of unemployment in inner city areas and the administration of local services in London is more expensive than in the rest of the country. In addition, London has a capitalwide concessionary fares scheme to enable pensioners to travel free around the city. All those factors are extremely expensive. Will the Minister explain why he did not accept the proposals of the Association of London Authorities and the London Boroughs Association for adequate funding of London's local authority services and has instead encouraged the massive cuts presently taking place?

Mr. Squire

I think that my answer exploded in the hon. Gentleman's face because it demonstrated, first, that in the past 10 years London has done very well out of grant distribution. That is not only my opinion because the list of authorities that receive grant show that the authority that he represents, Islington, has the fifth highest amount of support per head of population of all authorities. The problem is not grant; it is that Islington and one or two other councils do not collect money in the first place. Islington's latest figures for the nine months to 31 December show that only two authorities are worse. If the figures were improved, that is where such authorities would get more money for funding.

Dame Angela Rumbold

In view of my hon. Friend's figures about the funding for London and the fact that transitional relief in London will be relatively high, does my hon. Friend agree that Londoners, and especially my constituents in Labour-controlled Merton, should be able to expect adequate services and relatively low council tax bills in the coming year?

Mr. Squire

My right hon. Friend is absolutely right. The system that we are introducing in April in co-operation with local authorities, which have been very helpful, will ensure that in London, as in the rest of the country, people will not face excessively high bills. I am sure that the transitional relief scheme will be welcomed in my right hon. Friend's constituency.