HC Deb 09 June 1998 vol 313 c861
6. Mr. Michael Fabricant (Lichfield)

If he will make a statement on the standard spending assessment formulae for shire counties. [43230]

The Minister for Local Government and Housing (Ms Hilary Armstrong)

The standard spending assessment formulae for shire counties are the same as for all other classes of authority that provide the same services.

Mr. Fabricant

The hon. Lady will be aware that, during the election, candidates for the Labour party addressed the fact that the standard spending assessment for education in Staffordshire was about half the shire average. They said that, if a Labour Government were elected, they would ensure that problem was rectified in a matter of months. We have had a Labour Government for more than a year, but all we hear is the same old song: we are reviewing the situation.

Ms Armstrong

The review of SSAs we had last year and the additional money that the Government have given to education mean that the hon. Gentleman's local authority of Staffordshire received an extra £17.58 million for education this year.

Mr. George Stevenson (Stoke-on-Trent, South)

When my hon. Friend looks at the formula for shire counties and other authorities, will she address the chronic injustice of the area cost adjustment? I know that the matter is under review, but can she give an assurance that the area cost adjustment and its unfairness will play a prominent role in that review?

Ms Armstrong

The area cost adjustment is one of the issues that is being discussed with the Local Government Association this year in the SSA working party. There are differing views throughout local government on what would be a fair system, and one of my concerns, which I urge my hon. Friend to take hold of, is that, although he may perceive injustices in the current system, some of the proposals tabled would result in what he would perceive as even greater injustices. The reality is that we have had a period of severe inequality and injustice in the way in which local government has been dealt its hand; we want to redress the serious injustices, but there is no easy way forward in respect of the area cost adjustment.