HC Deb 27 July 1977 vol 936 cc360-1W
Mr. Fry

asked the Secretary of State for the Environment if he will list those county councils where the difference in rate support grant due under the undamped formula for 1977–78 and the un-damped formula for 1976–77 exceeds 10 per cent.

Mr. Guy Barnett

I am writing to the hon. Member.

Mr. Fry

asked the Secretary of State for the Environment, in view of the establishment by the Government of a correlation between high levels of expenditure and the rate of house building, why the new housing starts factor included in the rate support grant distribution formula for 1976–77 has now been abandoned.

Mr. Guy Barnett

The housing starts factor appears in the rate support grant distribution formula for 1977–78, which is based on a combination of the needs assessments prepared for the three years 1975–76, 1976–77 and 1977–78. New needs assessments are made annually to reflect the changing pattern of differences in expenditure needs. The non-selection of housing starts in the needs assessment prepared for 1977–78 reflects this changing pattern; it was decided that other factors better represented differences in expenditure needs between authorities.

1975–76 1976–77 1977–78
£ £ £
Numbers of persons in shared households … … — — 53.6
Direct grant grammar school pupils under 16 … … 220 169 122
Direct grant grammar school pupils over 16 … … 342 262 —
People of retirement age living alone … … 221.3 192.8 94.3
One parent families … … — 576.5 1,349.4
Secondary school pupils (excluding direct grammar—
Under 16 … … 314.3 241.2 121.5
Over 16 … … 488.3 374.8 —

Mr. Fry

asked the Secretary of State for the Environment if he will reconsider the weighting given to the persons unemployed factor in the rate support grant distribution formula in view of the doubts expressed about its statistical validity.

Mr. Guy Barnett

The RSG order and the grant distribution formula for 1977–78 were approved by the House in December last. The distribution arrangements for 1978–79 are now under review in consultation with the local authority associations. This review will cover the needs factors which might be used for a distribution formula.