§ Mr. Adleyasked the Secretary of State for the Environment if he will examine the extent to which central Government have effectively increased their influence over local government expenditure since 1945; and if he is taking account of this factor in his review of local authority financing.
§ Mr. KingThe relationship between central and local government has traditionally rested on the understanding that local government respects the overall financial policies of central Government. I firmly believe that that relationship should continue on a voluntary basis. However, in reviewing matters relating to local government finance, I shall have regard to the extent to which the behaviour of local authorities indicates willingness on their part to preserve that relationship.