§ Mr. Christopher Price
asked the Secretary of State for the Environment if, pursuant to the answers of 14 April, Official Report, c. 451–52 and 27 April, Official Report, c.337–38, he will give details of the factors which led to the increase of £800 million in local authority pay between 1978–79 and 1981–82; and to what the remaining £300 million increase was attributed.
§ Mr. Giles Shaw
The increase in pay of £800 million —in 1981–82 cost terms—results almost entirely from the increase in local authority pay rates, which rose faster than the GDP deflator in the period 1978–79 to 1981–82. The increase in pay rates covers the effects of pay settlements for the many pay groups employed by local authorities.
The remaining £300 million is an estimate of the increase, in 1981–82 cost-terms, in local authorities' running expenses — including subsidies from the rate fund — less the change in sales, fees and charges, adjusted to the same price basis.