HC Deb 22 January 1996 vol 270 cc8-10
6. Mr. Jon Owen Jones

To ask the Secretary of State for Wales when he last met leaders of local authorities to discuss the local government financial settlement. [8834]

Mr. Hague

I chaired a meeting of the Welsh consultative council on local government finance on 18 December 1995.

Mr. Jones

I trust that those who were present at the meeting made the Secretary of State aware of the effect of the Government's grant to local authorities on the council taxes in Wales that are soon to be announced. Is the Secretary of State aware that we shall see increases of 30 or 40 per cent. in council tax across Wales? What effect does he believe that that will have on the Welsh economy and on the feel-good factor in Wales? What effect is the rise likely to have on the prospects at the next election of the pitifully few Conservative Members who represent Welsh constituencies?

Mr. Hague

As the hon. Gentleman knows, council tax levels are set by local authorities. Notwithstanding that, I expect that there will be a large differential between English and Welsh council taxes for the foreseeable future. Local authority leaders made certain representations to me at the meeting on 18 December and further representations in the period of consultation, which ended on 5 January. I shall, of course, consider those representations.

Mr. Wigley

Is the Secretary of State aware that, if local authorities such as mine restricted their council tax increase to the 3 per cent. present rate of inflation, in order to balance their books, they would have to cut some 50 teaching posts, close 15 rural schools, withdraw social services from 1,500 vulnerable people and close leisure centres for one or two days a week? Is that the objective of the settlement that he has made?

Mr. Hague

No. As the hon. Gentleman knows, I have increased the amount of money that central Government will give to local government in the coming year. It is not possible to satisfy every demand for money on every occasion, as the hon. Gentleman knows, but I have increased the money that is given to local government. It is up to local government to play its part, in being as efficient as possible and running its services as well as it can, to ensure that we get the best possible value for money.

Mr. Alex Carlile

In particular, what excuses does the Secretary of State have to offer to the residents of the politically independent area of the new Powys unitary authority, who face a minimum increase of 15 to 20 per cent. in their council tax just to maintain services?

Mr. Hague

I welcome the hon. and learned Gentleman—on a day when the Liberal party has told us that it stands for high taxes, is soft on Europe and is naive on the economy, I wonder that he asks me about a possible tax increase. The question is similar to those that I was asked earlier, and therefore the answer is similar: I am giving an increased amount of money to local government during the coming year, although the actual level of council tax is set by local authorities. I expect Welsh council taxes will be far below English council taxes in the coming year.

Mr. Hanson

Is the Secretary of State aware that in Flintshire there is not only concern about education—mentioned by my hon. Friend the Member for Alyn and Deeside (Mr. Jones)—but growing concern among the leaders of that authority about the future of Theatr Clwyd and the 100 jobs that it creates in my constituency, plus the many more knock-on-effect jobs in the town of Mold? Will the Secretary of State agree today to review the settlement to see whether there is any further assistance that he can give Flintshire, to ensure that that excellent facility continues as a source of pride in north Wales?

Mr. Hague

As I said in answer to the hon. Member for Alyn and Deeside (Mr. Jones), I received many representations in the consultation that ended on 5 January and I shall consider all those representations, including those that I received from Flintshire.