§ Mr. George Cunninghamasked the Secretary of State for the Environment if he will state in the Official Report an account of how exactly the limitation on the adjustment of London's needs element to 33½ per cent. of London's resource advantages will be calculated; and what definition of London's resource advantage is taken for this purpose.
§ Mr. John SilkinLondon's resources advantage is the advantage in revenue-raising capacity local government in London enjoys as a result of the excess of its rateable value per head over the "national standard" used in the distribution of the resources element of RSG. It will be calculated as follows:
Estimates are made of
- (i) the average rate poundage that would be required in London for 1976–77 if no adjustment were made for London's resources advantage in fixing London's share of the needs element: and
- (ii) the average rate poundage that would be required in London if London's rateable value per head were no higher than the 'national standard' of £176 proposed for 1976–77 and needs element was paid in London on the same basis as in (i) above.
The difference between these two estimated rate poundages is then multiplied by London's total rateable value, including the "local deficiencies in rateable value of those boroughs which will receive the resources element of RSG," to give London's total advantage in resources. The adjustment my right hon. Friend proposes 716W to make to the sum London would otherwise receive in needs element for 1976–77 amounts to 33½ per cent. of this total advantage.