§ Mr. Wareingasked the Secretary of State for the Environment what amount of interest accrued to Her Majesty's Government as a result of payments being withheld from Liverpool city council during the period when that local authority delayed fixing a rate; and if this accrued interest was credited to the Liverpool city council on the final settlement of its rate.
§ Mrs. RumboldIt is not possible to give a figure since the calculation would depend on hypothetical assumptions about how central Government's financing would have been carried out in other circumstances.
§ Mr. Wareingasked the Secretary of State for the Environment what is the total sum of money withheld by Her Majesty's Government from the Liverpool city council as a consequence of that local authority's delay in fixing a rate for 1985–86; and if he will make a statement.
§ Mrs. RumboldPayment of some £8.2 million was held back because of the city council's delay in setting a rate in 1985–86.
Four central Government grants should not be paid before a rating authority has fixed its rate. These are:
- (i) rate rebate subsidy;
- (ii) grants towards rate relief for disabled persons and institutions;
- (iii) compensation to local authorities for loss of rate income in enterprise zones; and
- (iv) contributions in lieu of rates on Crown and diplomatic properties.
Payment of some £8.2 million of these grants to Liverpool city council was delayed in 1985–86 until after the council set a rate on 14 June.