§ Mr. Hugh D. Brownasked the Secretary of State for Scotland if he will announce the result of his discussions with local authorities on the distribution of rate support grant to be introduced in 1967.
§ Mr. RossMy hon. Friend the Joint Parliamentary Under-Secretary of State met representatives of the local authority associations on 14th October, and reached general agreement on a distribution formula which will be submitted for the approval of the House after the Local Government (Scotland) Bill becomes law.
The local authority associations agreed that the formula should be one which would not give rise to major changes in grant as between different authorities of classes of authority, because of the possibility of more fundamental changes after the structure of local government has been considered in the light of the report of the Royal Commission.
It was agreed that the Rate Support Grant will be divided into its three elements as follows:—
- (a) The domestic element will be the equivalent of the product of a l0d. rate on all domestic properties.
- (b) The resources element. The total of this element will be in the proportion of 1:3 to the needs element. The weighted population to be applied to the formula in Schedule I of the Bill will be that at present used for Exchequer equalisation grant, i.e., actual population plus the number of people under 15 plus weightings for increasing and decreasing population, and population in relation to road mileage.
182 - (c) The needs element. This element will include a special portion for roads calculated as follows:—
Aggregate needs elements x rates expenditure less specific roads grant.
Total (all services) expenditure less specific grants
This portion will be divided between counties, including small burghs, on the one hand, and cities and large burghs on the other, in proportion to their classified road mileage plus population in thousands. These two sums will subsequently be distributed among the constituent authorities by a detailed formula which takes account of population, classified road mileage and area.
The remainder of the needs element will be distributed between counties, including all burghs, on the one hand, and cities on the other, in proportion to weighted population. Weighted population will consist of actual population plus the number of pupils at education authortiy schools (differently weighted according to stage of education) plus children under 5, plus all persons under 15, plus all persons over 65, plus two weightings for sparsity. These latter will depend on:—
- (i) proportion of population to miles of road, and
- (ii) ratio of landward to total population.
Schedule I of the Bill provides that within counties there will then be a secondary distribution of grant between the landward area and the burghs in proportion to penny rate product or standard penny rate product whichever is the higher.
The whole formula will be subject to reconsideration when a further Rate Support Grant Order is made.