HC Deb 26 March 1996 vol 274 cc826-7
13. Mr. Pawsey

To ask the Secretary of State for the Environment what representations he has received about the review of the area cost adjustment; and when he now expects to have its findings. [20948]

Sir Paul Beresford

Local authorities and the local authority associations are making representations to the review team. I expect to have the review's findings at the end of June this year.

Mr. Pawsey

I am obliged to my hon. Friend for that reply. Is he aware of the frustrations of local authorities, particularly about the way in which the area cost adjustment works and is implemented? My hon. Friend will recall that the largest element of expenditure in local authorities is pay, and the fact that that is negotiated nationally should mean that area cost adjustment is unnecessary. Could my hon. Friend bring forward the review and get rid of area cost adjustment as quickly as possible?

Sir Paul Beresford

If my hon. Friend thinks about it, he will appreciate that there would be as many screams on one side as cries of joy on the other; hence the review.

Mr. Pike

Although the Minister may be right about there being screams from the losing side and cries of joy from the gaining side, does he accept that it is not good enough for local authorities that believe they are losing to find out in June or July that the system is to be reviewed and that they will have to wait until next year? Should they not be given some assistance this year?

Sir Paul Beresford

As an ex-local government man, the hon. Gentleman will be well aware that that proposition just does not stand up.

Mr. Lidington

Will my hon. Friend bear it in mind, when he makes his decision, that if the area cost adjustment were abolished it would abolish jobs for teachers and police officers in every authority in the south-east of England?

Sir Paul Beresford

I think that that explains the dichotomy across the House.