HC Deb 14 June 1993 vol 226 cc702-4

Lords amendment: No. 189, after clause 125 insert the following new clause—

(". In subsection (1) of section 80 of the Local Government and Housing Act 1989 (determination of formulae for calculating Housing Revenue Account subsidy), the words 'and for any year the first such determination shall be made before the 25th December immediately preceding that year' shall cease to have effect.")

Read a Second time.

Motion made, and Question proposed, That this House doth agree with the Lords in the said amendment.—[Sir George Young.]

Madam Deputy Speaker

With this, we may take Lords amendments Nos. 217, 278 and 283.

Mr. Pike

Can the Minister explain why the change involving the date of 25 December has been made? Is it connected with the change in Budget arrangements, under which tax and benefit provisions will both be announced in November, or is it because the Government have rarely achieved the 25 December target and are therefore regularising the position?

As I am sure the Minister will recognise, given all the implications for local authorities, it is essential that we dispense with a system that is increasingly causing all local authorities considerable difficulties, regardless of which party is in control. Many key decisions affect their budgets when they are compelled to comply with legislation according to a rigid timetable. Many of the key factors affected by Government decisions are announced increasingly late, which makes it increasingly difficult for councils to meet their statutory requirements.

Sir George Young

As the hon. Gentleman implied, the amendments are indeed about the arrangements for the unified Budget. The background to the amendments was the announcement in last year's Budget speech that the Government have decided to change the annual Budget timetable so that tax and spending proposals can in future be presented to Parliament at the same time in the form of a unified Budget. The Government are planning on the basis that the date of the unified Budget this year will be no later than the last week of November.

We are required by legislation to consult representatives of local government on the proposed subsidy determinations before they are issued in final form, but we generally have to await the Chancellor's unified Budget announcement of Government spending plans before doing. so. In such circumstances, there will be insufficient time after the unified Budget announcement to allow authorities a reasonable period in which to comment on the draft determinations and for my right hon. Friend to consider those comments and then issue the determinations in their final form before the 25 December deadline. Hence the need for the amendment.

In response to the hon. Member for Burnley (Mr. Pike), I can say that every effort will be made to issue the subsidy determinations as soon as possible after Christmas. The Department has stated its intention to do so by 10 January. That has been made possible by the helpful suggestion of local government representatives, which the Government have accepted, to shorten the consultation period on the draft determinations so that it can end before Christmas.

Question put and agreed to.

Lords amendments Nos. 190 to 283 agreed to, some with special entry.

Committee appointed to draw up reasons to be assigned to the Lords for disagreeing to their amendment No. 6: Mr. John Battle, Mr. Tony Baldry, Mr. Timothy Kirkhope, Mr. Jack Straw, Sir George Young; Three to be the quorum; to withdraw immediately.—[ Mr. Baldry.]

Reasons for disagreeing to one of the Lords amendments reported, and agreed to; to be communicated to the Lords.