§ Mr. GorrieTo ask the Secretary of State for Scotland what plans he has to compensate rural local authorities for the increase in the price of vehicle fuel announced in the Budget statement. [9617]
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§ Mr. ChisholmThe increase in the price of vehicle fuel forms a significant part of the Government's environmental strategy and aims to reduce carbon dioxide emissions by encouraging lower fuel consumption. Local government has its part to play and my right hon. Friend has no plans to compensate rural local authorities beyond the benefit they already gain in the distribution of grant for rural factors such as population sparsity and weighted road length. In addition, local authorities will benefit directly from the other measures announced in the Budget: the additional £89 million current expenditure for schools next year; and the £8.9 million of capital resources this year with a further £26.7 million in each of the four subsequent years, also for education.