§ Mr. Proctorasked the Secretary of State for the Environment what consideration he has given to applying the rate-capping proposals contained in the White Paper Cmnd. 9008 to low-spending authorities which exceed their grant-related expenditure level rather than their target level; and if he will make a statement.
§ Mr. WaldegraveThe selective rate limitation scheme is directed at no more than 12 to 20 of the highest spending authorities. Authorities who are not high spenders have nothing to fear.
Authorities spending less than their grant related expenditure (GRE) will be statutorily excluded from selection. So will smaller authorities spending less than a given expenditure level — we have suggested £10 million. For other authorities the degree of overspending in relation to GRE will be a relevant factor. Other factors, including performance against expenditure targets, may be taken into account but there is no necessary linkage between liability for holdback and liability for selective rate limitation.
§ Mr. Proctorasked the Secretary of State for the Environment if he will consider reducing the penalties contained in the White Paper Cmnd. 9008 for low-spending authorities so as to continue the same level of penalties currently in force for those authorities which exceed their target expenditure levels; and if he will make a statement.
§ Mr. WaldegraveWe are currently consulting local government about expenditure targets for 1984–85 and the grant holdback which will apply to authorities which exceed them. We will announce decisions on these matters in the rate support grant settlement in December.