HL Deb 01 July 1985 vol 465 cc954-5

2.51 p.m.

Baroness David

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what are their intentions in relation to the advanced further education expenditure pool after the judgment in the Queen's Bench Divisional Court in the case of Regina v. Secretary of State, ex parte Inner London Education Authority.

Baroness Cox

My Lords, my right honourable friend the Secretary of State for Education and Science is considering the judgment.

Baroness David

My Lords, that is a not altogether unexpected reply. Is the Minister aware that the other local authorities are very anxious about what the Secretary of State will do, as they feel that they may be £20 million to £25 million worse off as a result of the judgment? Will the noble Baroness please convey that concern, and does she have any comment to make?

Baroness Cox

My Lords, as I understand the matter, it is indeed a fact that if the Inner London Education Authority's contribution were reduced, the total contribution from other local education authorities would increase by the same amount. The effect on the expenditure of individual authorities would depend on the precise nature of the change in the formula. The block grant would tend to equalise the impact of such expenditure changes on rate bills.

Baroness David

My Lords, will the noble Baroness please encourage her right honourable friend the Secretary of State to come to some decision, possibly involving producing the money from the department itself, which it seems to me would be the fairest way, rather than make all the other local education authorities suffer as a result?

Baroness Cox

My Lords, I am very happy to acquiesce in the first suggestion of the noble Baroness—that I should draw the attention of my right honourable friend the Secretary of State to the wish that he should come to a decision. I am less happy with the suggestion that money should come from the department. I may point out that my right honourable friend needs some time to consider the judgment—it is only 10 days old—and he will, naturally, be consulting the local authority associations before changing the formula, if a change is to take place.

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