§ Lord Boyd-Carpenterasked Her Majesty's Government:
Whether the provisions of recent legislation with respect to rate-capping will apply to the Inner London Education Authority when constituted on its proposed new basis; and what action is contemplated to secure the strictest economy in the expenditure of this body.
§ The Earl of SwintonYes. The Government propose that the new ILEA should be designated automatically for its first three years under the Rates Act 1984. Thereafter it will continue to be eligible for designation, as in 1985–86. The Government consider that this is the most effective means of securing that the existing authority and its successor take a responsible view of their expenditure.
A range of other measures is also proposed, including a power to enable the Secretary of State to control the manpower of the new authority for the first three years of its existence; a duty on the new authority to consult the councils of the inner London boroughs and the City about its draft budget, its main policy objectives and its school reorganisation proposals; and a duty on the Secretary of State to carry out a review of the performance of the new authority by 31st March 1991.
The Rates Act 1984 also contains provisions requiring authorities, including the ILEA, to consult business ratepayers about their draft budget and enabling the Secretary of State to require precepting authorities to send background information about their expenditure direct to ratepayers.