§ Mr. Maxwell-Hyslopasked the Prime Minister what information she has as to the margin by which the increase in audit fees proposed by the Audit Commission exceeds the current rate of inflation.
§ The Prime MinisterThis is a matter for my right hon. Friend the Secretary of State for the Environment. I understand, however, that the Audit Commission proposes an overall fee increase of 6.6 per cent. for the year beginning 1 November 1987. The rise in the retail prices index for the 12 months to September was 4.2 per cent.
§ Mr. Maxwell-Hyslopasked the Prime Minister if she will request the Secretary of State for the Environment to exercise his powers under section 21(7) of the Local Government Finance Act 1982 to make regulations prescribing a scale of audit fees which embodies an increase lower than the 6.5 per cent. rise proposed by the Audit Commission; and if she will make a statement.
§ The Prime MinisterThis is a matter for my right hon. Friend the Secretary of State for the Environment. Under the Local Government Finance Act 1982 it is for him to consider whether it is necessary or desirable to prescribe a scale of fees in place of the scale prescribed by the Audit Commission.