HC Deb 13 February 1995 vol 254 cc646-7
. Mr. Ainger

To ask the Secretary of State for Wales what representations he has received on his local government settlement for 1995–96.

Mr. Redwood

I have received a number of representations on the settlement, which was debated and agreed on 8 February 1995.

Mr. Ainger

Is the Secretary of State aware that his claim that schools can meet the teachers' pay rise from their accumulated balances is completely without foundation? Is he aware that this morning I spoke to head teachers of secondary schools in my constituency, each of whom said that they would be unable to meet the pay rise without cutting staff and equipment budgets and, in some cases, going into deficit? Does he now accept the argument of the Secretary of State for Education: that unless the teachers' pay rise is fully funded by central Government, it will be disastrous for the education service?

Mr. Redwood

I think that the hon. Gentleman has probably switched his question. I imagine that he originally intended to ask about the police—a big increase in the settlement took care of that problem—but he is wrong in what he said. There is money in the settlement to pay for good teachers and to meet the increase in teachers' pay that we have accepted from the recommendations of the review body. I identified in the debate a number of ways in which that money can be found, not only from balances in schools, and the hon. Gentleman should remember that the total settlement approved was £87 million higher than in the current year.

Sir Wyn Roberts

Will my right hon. Friend confirm that, as a result of good settlements in previous years, most local authorities have accumulated substantial balances, which, along with aggregate Exchequer grant, should be very helpful to them?

Mr. Redwood

My right hon. Friend is right. There are balances in the counties and in the schools, and an extra £600 million, or 30 per cent., has been made available since 1991, which is well above the inflation rate.