§ Mr. WebbTo ask the Secretary of State for the Environment, Transport and the Regions what assessment he has made of the current rate of inflation for the basket of goods and services purchased by local authorities. [103259]
§ Ms Beverley HughesEmployee costs account for more than half of local authorities' costs, and this year's pay settlements affecting local authorities are in the region of 2 to 3.6 per cent. Local authorities will continue to benefit from the low inflation and stable economy being delivered by the good economic management this Government provides as well as the predictability that the three year settlement has provided.