§ Mr. David StewartTo ask the Secretary of State for Scotland what plans he has to cap local authority spending in the current year. [89115]
§ Dr. ReidNone. This year we fulfilled our Manifesto commitment to abolish crude and universal capping; instead Scottish local authorities were issued with indicative expenditure guidelines. Most authorities have exercised their new discretion sensibly. Eight authorities have set budgets in excess of the guideline, although in most cases by small amounts. Three authorities have made large increases; they are East Dunbartonshire, Aberdeenshire and Perth and Kinross.
I have consulted the First Minister, who will be responsible for this matter after 1 July. We have decided not to cap any authorities this year. However we have called in the three authorities named above to discuss why they have made such large increases and put them on warning that we will expect them to return to guideline next year.