§ Mr. Andrew MitchellTo ask the Chancellor of the Exchequer if he will make a further statement on the public expenditure planning total for 1991–92.
§ Mr. Norman LamontThe Secretaries of State for the Environment, Scotland and Wales have today announced increases in central Government expenditure on a new scheme for community charge reduction and other forms of support for local authorities of some £1.1 billion in 1991–92, net of savings on community charge benefit.
The £1.1 billion net increase in central Government support for local authorities will be added to next year's public expenditure planning total. There will, however, be no change in projected local authority expenditure as a result of this switch in financing, and therefore no increase in total public expenditure as measured by general government expenditure (GGE). Local authority expenditure will continue moreover to be subject to capping.
On financing, the Government's strategy remains to balance the budget over the medium term. The decisions announced today do not alter that policy and will be taken into account in framing the Budget proposals.