HC Deb 08 November 1995 vol 265 cc985-6W
Mr. William O'Brien

To ask the Secretary of State for the Environment what representations he has received about the additional revenue allocated to local education authorities over the capping levels to provide additional services to meet local demands. [40322]

Sir Paul Beresford

I refer the hon. Member to the answer that I gave him on 1 November 1995,Official Report, Wednesday 1 November, columns 372–74.

Mr. Betts

To ask the Secretary of State for the Environment what representations he has received with regard to the capping criteria. [40327]

Sir Paul Beresford

My right hon. Friend received a large number of representations about the capping criteria for 1995–96. He will announce his intentions for capping for 1996–97 as part of his proposals for the local government finance settlement shortly after the Chancellor's Budget statement.

Ms Hodge

To ask the Secretary of State for the Environment how many authorities, on appeal, he allowed to set budgets in 1995–96 above his Department's initial guidelines. [40330]

Sir Paul Beresford

Three.

Mr. Nigel Evans

To ask the Secretary of State for the Environment what plans he has to remove capping from local authorities. [40337]

Mr. Burden

To ask the Secretary of State for the Environment what changes he intends to make to the capping criteria. [40357]

Sir Paul Beresford

My right hon. Friend will announce his proposals for the local government finance settlement for 1996–97, including his intentions for capping, shortly after the Chancellor's Budget statement.

Sir Irvine Patnick

To ask the Secretary of State for the Environment what is the estimated savings in terms of public expenditure as a result of measures taken over the past eight years to restrict spending by local authorities. [41861]

Sir Paul Beresford

Since 1990–91, when capping in its current form was introduced, it has been directly responsible for reducing the budgets of those authorities that challenged their caps by a total that has now reached around a third of a billion pounds a year compared with the budgets originally set. The great majority of authorities did not challenge their caps, but set budgets within the limits implied by the capping criteria; although no direct estimate can be made, it is clear that in these cases too capping has been generally successful in ensuring that many authorities have budgeted at a lower level than would otherwise have been the case.

Mr. David Evans

To ask the Secretary of State for the Environment how many councils have been warned by the district auditor that he is unhappy with their accounts or expenditure. [40356]

Sir Paul Beresford

Appointed auditors may formally warn local authorities about their accounts or expenditure through reports in the public interest, under section 15(30) of the Local Government Finance Act 1982, or by making recommendations under section 5 of the Local Government Finance Act 1992. In 1993–94, seven public interest reports were made, and section 5 recommendations were included in the management letters of 10 local authorities.

Mr. Gordon Prentice

To ask the Secretary of State for the Environment what percentage of local authority capital receipts can be used for new projects rather than debt repayment(a) up to 31 March 1996 and (b) beyond that date. [42177]

Sir Paul Beresford

At present, local authorities can normally spend on purposes other than debt repayment 25 per cent. of receipts from the sale of housing assets and 50 per cent. of receipts from disposal of other assets. Temporary relaxations introduced this year mean that authorities can now spend on new projects increased proportions of receipts from the sale of certain types of assets. These are:

  • Airport companies: 75 per cent. (from 1 April 1995 to 31 March 1997)
  • Bus companies: 75 percent (from 1 April 1995 to 31 March 1996)
  • Car parks: 90 per cent. (from 1 September 1995 to 31 August 1996)
  • Shops: 90 per cent. (from 1 September 1995 to 31 August 1996)
  • Crematoria: 90 per cent. (from 1 January 1996 to 30 June 1997)

In addition, we have announced our intention to make regulations with the effect that for two years from 1 April 1996 authorities should be able to spend 90 per cent. of receipts from the sale of county farms, and 75 per cent. from the sale of education assets.