HC Deb 20 November 1996 vol 285 cc975-6
11. Mr. David Marshall

To ask the Secretary of State for Scotland when he next intends to meet the Convention of Scottish Local Authorities to discuss local government finances. [3469]

Mr. Kynoch

The next meeting is scheduled for 17 January.

Mr. Marshall

Does the Minister agree that the present formula for distributing revenue support grant takes little or no account of the costs, services and needs associated with business communities in city areas? Is he aware that Glasgow city council collects slightly more than £200 million per annum in non-domestic rates but receives slightly more than £150 million in return—a loss of £50 million per annum to the city? What does the Minister intend to do about such blatant discrimination against the major cities in Scotland?

Mr. Kynoch

The hon. Gentleman is only too well aware that the distribution of funds to local authorities in Scotland is discussed at the distribution committee of the Scottish Office and COSLA. The formulae used for that distribution have been in place since 1985, and are discussed and fine tuned each year. I suggest that the hon. Gentleman asks the City of Glasgow why it still has not collected about £200 million of community charge and council tax. If it did, that might solve its problems more quickly.

Mr. Norman Hogg

Is it not the case that the Government already know what next year's local government funding will be? Is the Minister not aware of the grave situation that was created for local government last year, which placed very many services in danger and put cultural activities at risk? Will the Minister give an assurance that nothing like that will happen this year, that the settlement will not be used for electioneering purposes and that local government will not be asked to bear the cost of cuts designed to assist the Government's other tax strategies?

Mr. Kynoch

I am sure that the hon. Gentleman is aware that, last year, an increase of about 3.6 per cent. was given to local authorities throughout Scotland from central taxation. That enabled most authorities to increase their budget by a minimum of 3 per cent. over the previous year; some were able to increase it by 4 per cent.

The hon. Gentleman should address his comments to Labour councillors on his local council and ensure that they obtain the best value for money for their council tax payers so that more services are provided at better value. At present, they do not even know how many people they employ, as was witnessed by the joint staffing watch survey carried out jointly with COSLA. I believe that we shall continue to treat local authorities fairly throughout Scotland, provided that they act responsibly on behalf of taxpayers.