Local Government Finance (Hansard, 11 January 1999)

§ Mr. Harvey
To ask the Secretary of State for the Environment, Transport and the Regions what the revised 1998–99 standard spending assessment base is for each local authority with responsibility for social services, taking into account the absorption of the special transitional grant for social services and the early years grant for education; what his policy is on publishing revised bases; and if he will recalculate for each such authority the published growth in standard spending assessment on the basis of the formula for carrying forward the special transitional grant for 1998–99 and previous years. [64574]

§ Ms Armstrong
When calculating growth in standard spending assessments for each authority, our policy has been to make adjustments to the base year where there are significant changes in responsibility and where funding amounts for changes in responsibility for each authority are available. To adjust in the manner requested for calculating growth between 1998/99 and 1999/2000, however, is not appropriate in the light of the Comprehensive Spending Review which started from a zero base, looking at expenditure needs afresh. The only fair comparison for social services is to look at total resources provided which, in aggregate, show a 6.1 per cent. cash increase or a 3.5 per cent. real terms increase between 1998/99 and 1999/2000. The increased resources we are making available will meet the costs of looking after existing and new community care clients, and enable local authorities to deliver real improvements in services.
There has been no absorption of the Early Years Grant for Education into SSAs for 1999/2000. The same amount of Early Years Grant is available in 1999/2000 as in 1998/99.

§ Mr. Hoyle
To ask the Secretary of State for the Environment, Transport and the Regions if he will define the criteria under which local authorities will be capped for excessive spending. [65285]

§ Ms Armstrong
No.
We have abolished crude and universal capping. My right hon. Friend will decide, after councils have set their budgets, whether capping is necessary in 1999/2000 and the principles for designation he will adopt if it is necessary.