§ Mr. Salmondasked the Secretary of State for Scotland what grant penalty he intends to impose on Banff and Buchan district council; by how much its budgeted expenditure for 1987–88 is below the expenditure need. assessment for the authority; and if he will make a statement.
§ Mr. LangThe grant penalty for Banff and Buchan is set out in the Rate Support Grant (Scotland) (No. 2) Order 1987 which the House approved on 20 July, and is £81,384, arising from a budgeted overspend against guideline of £81,000. The Council's budgeted expenditure for 1987–88 is £512,000 below its assessment of relative expenditure need, but 11.2 per cent. above its expenditure in 1986–87, a substantial growth in real terms. If the Council brings its expenditure down to guideline at outturn the penalty will be restored to it.