Local Authority Expenditure (Hansard, 19 May 1982)

§ 40. Mr.Cryer
asked the Secretary of State for the Environment by what margin local authorities exceeded financial targets for 1979, 1980 and 1981.

§ Mr. Heseltine
Local authority excess spending on net current expenditure above the rate support grant settlement—at prices ruling in the November prior to the settlement year—is as follows:

Percentage Excess

per cent.

1979–80 England and Wales 3.2^*†

1980–81 England and Wales 2.6 ^†

1981–82 England 5.3 ^‡

England (a) (b) (c) (d) (e)

Rate fund expenditure Sales, fees charges and other income Grants^* Rates^† Domestic rates^‡ (included in (d))

1974–75

£ million 9,267 1,764 4,791 2,808 1,120

£ per capita 200 38 103 61 24

1975–76

£ million 11,897 2,341 6,379 3,647 1,410

£ per capita 256 50 138 79 30

1976–77

£ million 13,545 2,768 7,049 3,979 1,570

£ per capita 292 60 152 86 34

1977–78

£ million 14,832 3,073 7,415 4,501 1,830

£ per capita 320 66 160 97 39

1978–79

£ million 16,748 3,603 8,161 4,942 2,050

£ per capita 361 78 176 107 44

1979–80

£ million 19,680 4,261 9,330 5,870 2,500

£ per capita 424 92 201 127 54

1980–81

£ million 23,765 5,077 11,135 7,444 3,240

£ per capita 511 109 240 160 70

1981–82

£ million^║ not available not available 11,685 9,420 4,110

£ per capital^¶ not available not available 251 203 88

1982–83

£ million^║ not available not available 11,977 10,789 not available

£ per capita^¶ not available not available 258 232 not available

^* Includes rate rebate grants, rate support grant, specific service and supplementary grants charged to revenue accounts.

^† Excludes government grants towards rate rebate.

^‡ Based on rateable value and poundage information. Figures for 1981–82 are provisional.

^║ Figures are based on local authorities' 1981–82 revised estimates and 1982–83 budgets. Gross expenditure is not available as sales fees and charges are not separately identified.

^¶ Based on OPCS mid-1980 population figures.

§ Mr. Major
asked the Secretary of State for the Environment what discussions he has had with the local authority associations about local authority expenditure in 1982–83; and whether he will make a statement.

§ Mr. Heseltine
I met the leaders of the local authority associations today in the consultative council on local government finance to discuss the budgets of local authorities for 1982–83 which show that authorities are planning to spend £1.4 billion, or nearly 8 per cent. more than was provided for in the rate support grant settlement for 1982–83. The Government regard this planned overspend as extremely serious. I, therefore, told the associations that we would implement the already announced scheme for grant abatement as soon as the
138W
^* on the basis of the net current expenditure provision announced by the present Administration in summer 1979.
^† based on outturn information.
^‡ based on revised budget information.

§ Mr. Dewar
asked the Secretary of State for the Environment if he will publish in the Official Report a table on local government finance in England showing for each of the financial years 1974–75 to 1982–83 the outturn or estimated figures for (a) gross expenditure, (b) charges and other income, (c) grant-borne expenditure, (d) rate-borne expenditure and (e) expenditure borne by domestic ratepayers, expressed both in pounds and pounds per capita.

§ Mr. Giles Shaw
The information is as follows:
Local Government Finance (No. 2) Bill received Royal Assent. This would reduce the grant payable to overspend authorities by about £315 million. We would also withhold some £200 million in grant under the same legislation in respect of local authorities' overspending in 1981–82. I also said that I was considering a further general holdback of grant for all authorities. In the meantime it was in the interests of all local authorities to review their spending plans to minimise the possible loss of grant and to protect their ratepayers from further substantial rate rises next year.

Percentage Excess
	per cent.
1979–80 England and Wales	3.2^*†
1980–81 England and Wales	2.6 ^†
1981–82 England	5.3 ^‡

England	(a)	(b)	(c)	(d)	(e)
	Rate fund expenditure	Sales, fees charges and other income	Grants^*	Rates^†	Domestic rates^‡ (included in (d))
1974–75
£ million	9,267	1,764	4,791	2,808	1,120
£ per capita	200	38	103	61	24
1975–76
£ million	11,897	2,341	6,379	3,647	1,410
£ per capita	256	50	138	79	30
1976–77
£ million	13,545	2,768	7,049	3,979	1,570
£ per capita	292	60	152	86	34
1977–78
£ million	14,832	3,073	7,415	4,501	1,830
£ per capita	320	66	160	97	39
1978–79
£ million	16,748	3,603	8,161	4,942	2,050
£ per capita	361	78	176	107	44
1979–80
£ million	19,680	4,261	9,330	5,870	2,500
£ per capita	424	92	201	127	54
1980–81
£ million	23,765	5,077	11,135	7,444	3,240
£ per capita	511	109	240	160	70
1981–82
£ million^║	not available	not available	11,685	9,420	4,110
£ per capital^¶	not available	not available	251	203	88
1982–83
£ million^║	not available	not available	11,977	10,789	not available
£ per capita^¶	not available	not available	258	232	not available
^* Includes rate rebate grants, rate support grant, specific service and supplementary grants charged to revenue accounts.
^† Excludes government grants towards rate rebate.
^‡ Based on rateable value and poundage information. Figures for 1981–82 are provisional.
^║ Figures are based on local authorities' 1981–82 revised estimates and 1982–83 budgets. Gross expenditure is not available as sales fees and charges are not separately identified.
^¶ Based on OPCS mid-1980 population figures.