§ Mr. Raffanasked the Secretary of State for Wales when he will make known his plans for local authority expenditure for 1986–87.
§ Mr. Nicholas EdwardsFollowing the autumn review of public expenditure, I have decided that the total available for capital expenditure allocation for Wales will be £323 million. This is £60 million, or 23 per cent., more than the total available for 1985–86, and is consistent with delivery of the plans in my right hon. Friend the Chancellor of the Exchequer's autumn statement to the House on 12 November.
Following my requests in July and December 1984 for expenditure restraint, councils have succeeded in reducing their capital expenditure in 1984–85 from an initial excess of around £90 million (33 per cent.) to £16 million (6 per cent.). In the light of this reduction I have decided to waive all outstanding offsets to capital allocations for both 1985–86 and 1986–87. District council spending power is therefore £10 million more than it otherwise would have been.
The total of councils' accumulated receipts increased substantially in 1984–85 but has remained broadly stable in the current year. I have therefore decided not to change for 1986–87 the prescribed proportion of captial receipts from the sale of assets which local authorities may use for additional capital expenditure. This will allow councils to make substantial additions to their capital spending using their new and accumulated receipts in 1986–87.
The increase in allocation which this package represents is further evidence that by keeping a tight rein on their expenditure in recent years local authorities in Wales have made it possible for me to make substantial additional sums available for much needed capital investment. I am sure that this will be welcomed by all concerned.
I shall shortly make announcements on the allocation of these resources to services and individual local authorities in the usual way.
January 1985 Per cent. August 1985 Per cent. September 1985 Per cent. Aberdare 4,067 21.9 3,884 20.9 3,962 21.3 Aberystwyth 1,356 11.8 1,457 12.7 1,474 12.8 Bangor and Caernarfon 5,295 19.7 5,067 18.8 5,358 19.9 Brecon 864 11.3 791 10.4 886 11.6 Bridgend 9,081 16.9 9,063 16.8 9,651 17.9 Cardiff 29,881 15.1 29,390 14.8 30,762 15.5 Cardigan 1,586 25.2 1,494 23.8 1,604 25.5 Carmarthen 1,657 9.9 1,624 9.7 1,747 10.4 Conwy and Colwyn 4,964 16.2 4,147 13.6 4,398 14.4 Denbigh 1,253 14.5 1,234 14.3 1,260 14.6 Dolgellau and Barmouth 737 16.9 550 12.6 610 14.0 Ebbw Vale/Abergavenny 7,291 20.6 6,890 19.5 7,428 21.0