§ 2. Mr. DafisTo ask the Secretary of State for Wales what representations he has received concerning the standard spending assessment for the unitary authorities in 1995–96. [37828]
§ Mr. DafisI thought that the Minister would say more, but I am glad to know that he has now recognised the need for a damping mechanism to mitigate the reduction that seems to be in the offing in relation to local government services in Wales. I am also glad that the Government are prepared to reconsider the formula for the standard spending assessment in future.
May I suggest to the Minister that, as a result of, first, increased demand for services, generated in part by Government legislation, and, secondly, cuts made over several years in areas such as schools and social services, the need now is for an enhanced level of funding rather than for a reduction? If the Government go for a reduction in funding, causing a reduction in the quality of services, to fund pre-election tax cuts, the political price that the Conservatives will pay in Wales will be very heavy.
§ Mr. JonesI note what the hon. Gentleman says. As he knows, our decisions about the spending arrangements for local government—and about all the other spending arrangements—will be announced in due course. I can confirm—I think that I detect a certain note of welcome for it—our decision to bring about a damping scheme to reflect the new situation in the standard spending assessments. There has been considerable constructive work by Welsh Office officials and local government officers, which has resulted in the revised indicative SSA figures, which we are publishing today. Copies have been placed in the Library and will be sent to the chief executives of local authorities. The figures are to be discussed with them on 6 November. My right hon. Friend the Secretary of State and I will discuss the subject with the Welsh Consultative Council on Local Government Finance on 16 November.
§ Mr. Nigel EvansDoes my hon. Friend agree that the people of Wales tend to get fed up with the whingeing of 4 Opposition politicians, who are for ever crying that local authorities in Wales do not get enough money? Is he aware, however, that only the other day Mid Glamorgan councillors tried to line their own pockets by voting themselves a 400 per cent. increase in allowances—no doubt at the same time as cutting essential services to the people who live in the area? Will my hon. Friend give an assurance today that capping will remain in place in Wales to protect the people who will end up having to pay the high bills that will be foisted on them by Labour councillors?
§ Mr. JonesI appreciate much of what my hon. Friend says; he has expertise in local government. He is absolutely right to point out the significance of councillors choosing to increase their pay by 600 per cent. They do so out of existing moneys, which means that they take the money away from other vital functions of local government.
§ Mr. Ray PowellWill the Minister reflect on an article today in The Daily Telegraph which states that the Government are considering slashing the special aid package to Scotland and to Wales? Last year, we had£5 billion for Scotland and Wales through the special aid package. Will the Minister consider what effect slashing the aid package would have on local government? Will he ask the Secretary of State whether he will take the same stand as the Secretary of State for Scotland? If the Government intend to slash this amount, they will be on their death bed.
§ Mr. JonesI am fascinated that, after being sacked by his leader only a fortnight ago, the hon. Gentleman has taken to reading The Daily Telegraph. Is this the rightward lurch that we know is going on in the Labour party today? I can simply tell the hon. Gentleman that my right hon. and learned Friend the Chancellor of the Exchequer is on record as saying that the formula arrangements for Wales have not changed and that that remains the position.
§ Mr. Simon HughesAlthough there has been a small increase in the budget for community care this year, what is the Welsh Office doing to address the fact that there is a deficit of about £71 million between assessed need and the grant for community care this year and the fact that there is a high risk that, when the unitary authorities take over next year, they will be even more stretched than local government is now?
§ Mr. JonesThe hon. Gentleman acknowledges that the increases that we laid down for three successive years have been left in place, despite the fact that inflation was lower than forecast for that period. We will consider all these matters when we make our announcements on local government spending towards the end of next month.