§ Mr. William Sheltonasked the Secretary of State for the Environment what estimate he now makes of the loss of rate support grant for London, resulting from the penalty clauses of the new grant-related expenditure procedures, consequent upon excessive expenditure by the Inner London Education Authority and other London local authorities.
§ Mr. KingThere are no penalties attached to the grant-related expenditure assessments. On local authorities' present budgets, the total of grant payable to London authorities if a grant holdback becomes necessary would be £1,140 million. This compares with the £1,316 million which would have been available if London and other local authorities had followed the Government's expenditure guidelines. About £70 million of the difference in these figures would be attributable to the loss of grant by ILEA because of their overspending.