§ Mr. Bestasked the Secretary of State for Wales (1) if he will list those local authorities in Wales whose latest estimate of 1985–86 expenditure levels are below those on which grant-related poundage levels were based; and what representations he has received on this matter;
(2) whether he estimates that any Welsh district councils will end the 1985–86 financial year outside the expenditure target he set;
(3) whether the settlement working group at its meeting on Monday 10 March considered those district councils whose rate support grant for 1986–87 was based on the likelihood that they would overspend in 1985–86; and if he will make a statement.
§ Mr. Wyn RobertsThree district and two county councils budgeted to spend over their expenditure target in 1985–86. Only one authority, Ynys Môn, has so far indicated to the Welsh Office that it expects its expenditure for the year to be within target. Revised expenditure estimates will be submitted to the department shortly, but the actual level of spending incurred by any council will not be known until accounts for the year have been finalised.
In relation to 1986–87, the expenditure base for grant-related poundages has been determined on the basis of councils' own budgets for 1985–86 as set out in the first supplementary report for that year. My hon. Friend has written to my right hon. Friend about the position in Ynys Môn and, as was explained to him, this decision was endorsed by the Welsh Consultative Council on Local Government Finance and we do not propose to change it.
The expenditure base for 1987–88 has yet to be determined. It was the subject of discussion at the 189W settlement working group meeting on 10 March and will be considered further in conjunction with other aspects of the 1987–88 settlement.