HL Deb 11 March 1999 vol 598 cc348-9

3.11 p.m.

Baroness Miller of Chilthorne Domer asked Her Majesty's Government:

To what extent the provisions of Section 137 of the Local Government Act 1972 have been used by local councils to provide new and improved services.

Baroness Farrington of Ribbleton

My Lords, research published last November found that Section 137 is used by an increasing number of parish and town councils to provide a wide range of activities, including funding for youth activities, schools and playgroups.

Baroness Miller of Chilthorne Domer

My Lords, I thank the Minister for her reply. In the light of that, would she consider the request of the National Association of Local Councils that the funding under this provision, which at present stands at £3.50 per head, be raised to at least £5 per head? Further, does not the Minister share the frustration of those parish and town councils caused by the fact that they cannot provide some of the basic facilities, such as playgroups and youth clubs, that they would like to be able to offer to their communities?

Baroness Farrington of Ribbleton

My Lords, it is most important to recognise that there has been an increase by local councils in the use of Section 137 funding. Indeed, 29 per cent. were using it in 1989–90 and the percentage has now increased to 56 per cent. The Government are reviewing Section 137 in the light of the new duty to promote well being. We want to consider representations from NALC as part of that process.

Lord Burlison

My Lords, as I am someone who is not steeped in local government, can my noble friend the Minister explain to me the nature of the provisions of Section 137 of the Local Government Act 1972?

Baroness Farrington of Ribbleton

My Lords, I shall do so, although I am conscious of the fact that someone may accuse me of reading.

Section 137 provides a local authority with power to spend a limited amount on activities for which it has no specific power but which will bring direct benefit to the area, or any part of it or all or some of the inhabitants". As the noble Baroness, Lady Miller, said, there is a current limit of £3.50 per local government elector, and it is between £1.90 and £3.80 per capita for district and county councils.

Lord McNally

My Lords, has the Minister heard the very eloquent speeches of her noble friend Lord Williams of Mostyn about the need for community and local action on crime prevention? Is this not a role that would be perfectly suited to parish councils if they were given the necessary resources?

Baroness Farrington of Ribbleton

My Lords, I am fully aware of the commitment of my noble friend Lord Williams of Mostyn to combat crime. This is certainly one of those areas in which co-operation can take place. However, I return to my original point; namely, that not all local councils need to resort to this funding. They are able to use funds which are available to them without resorting to Section 137.

Lord Monkswell

My Lords, can my noble friend the Minister confirm that the per capita amount that these local authorities are allowed to spend is in fact what used to be the product of the penny rate? Are we talking about something which is still a hangover from the poll tax days? Further, in considering the review of this section of the 1972 Act, will the Government ensure that the ability to pay will be taken into account?

Baroness Farrington of Ribbleton

My Lords, I believe that my noble friend Lord Monkswell will be surprised by my response. Indeed, this is one of the matters which may not be blamed on the poll tax. It actually pre-dated it. The department has stated its intention to promote a duty of well-being, which will broaden and allow a wider range of activities in this area. Obviously we will want to consult with both the Local Government Association and the National Association of Local Councils which are very helpful in this respect.

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