Mr. R. C. Mitchellasked the Secretary of State for the Environment if he will make a statement on the level of local authority current expenditure in 1975–76 and its implications for 1976–77.
§ Mr. CroslandThe level of expenditure in 1975–76 in England and Wales was discussed at the last meeting of the consultative council on 1st August. The council agreed that on the best evidence now available, total current expenditure was likely to be some 2 per cent. over what had been estimated for the 1975–76 rate support grant settlement.
I have said previously that if local authority current expenditure in 1975–76 turns out to be higher than was allowed for in last autumn's rate support grant settlement, there will be less room for increases in expenditure in 1976–77. In very broad terms, the excess of local authority current expenditure this year amounts to the level of real growth previously allowed for next year. This means that there is no scope for increased expenditure in total, in real terms, in local authority current expenditure in 1976–77. There will have to be a standstill.
Authorities will therefore need further advice on how to limit expenditure. While detailed advice will need to wait upon this autumn's rate support grant settlement, I am urgently considering with local authority associations what preliminary advice can be given now.