§ Mr. David EvansTo ask the Secretary of State for the Environment what are his proposals for the appropriate level of aggregate local authority spending in 1993–94; and what is the level of central support for that spending.
§ Mr. Tony BanksTo ask the Secretary of State for the Environment when he will issue the consultation paper on the Government proposals for revenue support grant for 1993–94.
§ Mr. HowardI propose that total standard spending for 1993–94 should be £41.142 billion for England. This represents an increase of £1.224 billion (3.1 per cent.) compared with this year's figure after adjustments for changes in local authority functions, including the transfer of most responsibilities for further education from authorities to the Further Education Funding Council on 1 April 1993. The total also includes the amount of £539 million for the transitional community care special grant announced by my right hon. Friend the Secretary of State for Health on 2 October.
This is a realistic increase when account is taken of falling inflation, public sector pay restraint in line with the announcement by my right hon. Friend the Chancellor today, and the extensive opportunities which authorities have to improve efficiency and value for money.
I propose that the level of aggregate external finance distributed to local authorities in 1993–94 should be £33.518 billion. This represents an increase of £1.167 billion (3.7 per cent.) after allowing for functional changes. It also includes the special grant for community care. This level of aggregate external finance means that the amount which authorities need to raise from local taxpayers in 1993–94 should be less in real terms than is being raised by the community charge this year.
I also propose that the national non-domestic rate multiplier for 1993–94 in England should rise by 3.5 per cent. to 0.416, in line with the rate of inflation. This will ensure that once again businesses will benefit from the Government's success in reducing inflation.
I shall announce proposals for the distribution of Government grants in 1993–94 later this month. At the same time, I intend to announce my capping proposals. I shall also set out my proposals for a scheme of transitional assistance to those households which face a significant increase in their local tax bills following the introduction of the council tax.
In the present difficult economic climate, both central and local government need to play their part in restraining expenditure to a level that the country can afford. Against that background, these proposals for total standard 961W spending, aggregate external finance and the national non-domestic rate multiplier provide a sound framework for the funding of local authority services in 1993–94. Provided that authorities act responsibly, this settlement should allow them to maintain the services they provide next year.