HC Deb 01 December 1994 vol 250 cc878-80W
Mr. Faber

To ask the Secretary of State for the Environment what are his proposals for bringing competition to bear on local authorities' corporate and administrative services.

Mr. Robert B. Jones

Corporate and administrative work comprises a number of distinct administrative support services as diverse as printing and reprographics, and building facilities management. These are provided to all parts of the authority. Local authorities' increasing recognition of the importance of gaining value for money for these services has meant that much of this work is already being exposed to market pressures. Most local authorities will re-charge in-house users for administrative support services. Those users, particularly where they themselves are exposed to CCT, will be keen to keep overhead costs down and will exert pressure for cost-effective and efficient support services.

Customers for administrative support increasingly have the freedom to go elsewhere if in the in-house service is inadequate. A significant proportion of administrative support services are already provided by external contractors, and some authorities have dispensed entirely with in-house support staff for much of the work.

The Government's discussions with local authority representatives have led me and my colleagues in Government to conclude that our objective of increasing

National non-domestic rate—calculation of distributable amounts
£ millions
1990–91 Outturn 1991–92 Outturn 1992–93 Outturn 1993–94 Provisional outturn 1994–95 in-year contribution 1995–96 estimated in-year contribution
(1) Income from local lists
Multiplier 0.348 0.386 0.402 0.416 0.423 0.423
Gross Rate Yield 10,301 12,033 12,270 12,357 12,491 12,908
(i)Reliefs
(a) Net Transitional Relief -182 -142 -395 -480 -548 -477
(b) Empty properties -710 -964 -1,162 -1,174 -1,214 -1,303
(c) Charitable -240 -305 -318 -352 -402 -435
(d) Discretionary -12 -16 -20 -21 -19 -20
Net Yield after reliefs 9,157 10,607 10,374 10,329 10,308 10,673
(ii) Collection Costs/Reductions to Contributions
(a) Costs of collection -43 -46 -67 -68 -69 -75
(b) Losses on collection -121 -203 -200 -192 -170 -190
(c) City of London offset -29 -30 -31 -25 -7 -7
Total contribution in respect of year 8,964 10,329 10,075 10,045 10,063 10,401
(iii) Adjustments
(a) Repayments/interest/ Late rating adjustments — 27 -254 -957 -888 -349
(b) Revisions to contributions at outturn (1994–95 only) — — — — -211 —
Total adjustments — 27 -254 -957 -1,100 -349
Net Local Yield 8,964 10,355 9,821 9,088 8,963 10,052
(2) Income from Central List
Net Central List Yield 1,016 1,100 1,098 1,095 1,118 1,151
(3) Income from Crown Contributions in Aid
Net Crown Yield 610 463 462 445 507 540
Total NDR Yield 10,590 11,918 11,381 10,627 10,588 11,743
(4) Exchequer Contributions
(a) Local List Transition — — 271 591 435 477
(b) Central List/ Crown — — 27 42 20 28
Total Exchequer contributions — — 298 633 455 505
Total NNDR pool payments (1+2+3+4) 10,590 11,918 11,679 11,261 11,043 12,248

competition in corporate and administrative support services is already being met though these means, and that extension of CCT to take this work would not bring sufficient additional benefits. We have, therefore, decided not to proceed with proposals to introduce CCT for local authority corporate and administrative services.