§ Dr. TwinnTo ask the Secretary of State for Transport what arrangements are proposed for the financial support of public transport in London following the reform of local government finance.
§ Mr. David MitchellAt present I am empowered by section 13 of the London Regional Transport Act 1984 to recover up to two thirds of my annual grant to London Regional Transport by means of a levy on rating authorities in London. With the replacement of the present rating system by improved arrangements for local taxation, this levy will no longer be appropriate and I propose then to abolish it. LRT's rapidly reducing need for external support will be found entirely from the Exchequer. As a consequence, there will be no need to allow for public transport support in calculating the revenue support grant to authorities' collection funds m London. London community charge payers will therefore pay the same for spending at need as charge payers elsewhere, even though they will not have to contribute directly to the financing of public transport. These arrangements are intended to provide that London charge payers will not be unfairly advantaged when the financing of public transport in London becomes wholly a national responsibility.