HC Deb 18 February 1986 vol 92 cc109-10W

asked the Secretary of State for the Environment, pursuant to the answer of 10 February, Official Report, columns 333–34, if he will set out in the terms used in paragraphs B25–B29 of annex B of the Green Paper "Paying for Local Government", Cmnd. 9714, the means of calculation of the rate support grant for the metropolitan district of Stockport in 1985–86.

Paragraph B.27 of annex B to the Greeen Paper "Paying for Local Government" Cmnd. 9714 indicates that the formula in the subsequent paragraph refers to 1986–87. The additional cost for each pound of expenditure above GRE is shown as 1.1p; in 1985–86 it is 0.69p as shown in paragrah 4 of annex J to the "Rate Support Grant Report (England) 1985–86". The formula is, therefore:

(Total Expenditure—GRE)

GRP=GRP*+0.69p (population)

For Stockport MBC using budgeted expenditure and the figures determined in the "Rate Support Grant Supplementary Report (England) (No. 2) 1985–86", this calculation is:

(£93,118,000–£94,104,000)

GRP= 149.7424p+ 0.69p =147.387468p

(288,900)

As paragraph B.25 shows:

Block grant=total expenditure-(GRPXrateable value)

For Stockport this calculation is:

Block grant=£93,118,000-(147.387468px.38,485,390)

Block grant=£36,395,358

This figure is then subject to a small adjustment to £36,396,938 so that the total of entitlements for all authorities is equal to the total grant payable.

The answer of 10 February, Official Report, columns 333–34, referred to rate support grant, in real terms, as the hon. Member requested. Domestic rate relief grant of£4,610,328 was added to the block grant entitlement to give £41,007,266 and this was divided by the GDP deflator of 1.05 to convert the total from cash terms to real terms. The result, £39,054,539 was rounded to £39.1 million.