§ Mr. SimsTo ask the Secretary of State for the Environment if he will extend the community charge grant scheme in order to provide further compensation to local authorities for the £140 reduction in community charges which occurred in 1991.
§ Mr. PickthallTo ask the Secretary of State for the Environment if he will make it his policy to extend the close end date for community charge grant beyond 31 March.
§ Mr. CurryThe community charge grant compensates local authorities for income forgone as a result of the £140 general reduction in community charges for 1991–92. The existing grant rules provide for grant to be paid in relation to 1991–92 charges collected up to 31 March 1994.
The Government have considered a number of representations for local authorities and the local authority associations about this matter. It has concluded that an extension of one year of the grant scheme would he justified. The extension will apply in England, Wales and Scotland. There will be no further extension.
The Government attach great importance to local authorities' continuing efforts to bring in the balance of their community charge arrears. The extension of the community charge grant scheme for a further, and final, year will allow authorities to receive compensation in respect of charges collected during this period.
Final payments of grant will be made in 1995–96 on the basis of audited claims showing income forgone by local authorities on 1991–92 charges collected by 31 March 1995. Repayment of grant in respect of community charge transitional relief in England is also to be delayed for a further year.