§ Mr. Nigel JonesTo ask the Secretary of State for the Environment under what provisions the budget set by Gloucestershire county council on 22 February is deemed illegal; and if he will make a statement.
§ Mr. Robert B. JonesThe power to designate authorities in accordance with capping principles determined under section 54 of the Local Government Finance Act 1992 can be exercised only after an authority has set its budget. The announcements on 1 December and 1 February made clear that the statements relating to692W capping principles were statements of Ministers' current intentions and that the criteria remain provisional. Authorities are not required to set a budget within the limits implied by the provisional criteria and they are not acting illegally if they do not do so. My right hon. Friend will take account of all the circumstances when he decides whether to designate any authority which fixes a budget above the level implied by the criteria which he in due course adopts. Designated authorities have 28 days within which to accept their cap or to make representations. If any right hon. Friend then requires an authority to reduce its budget he will place an order before the House.