§ Mr. George Cunninghamasked the Secretary of State for the Environment what is his estimate for the increase in the needs element of rate support grant which will go to London as a whole in 1976–77 as a result of the inclusion of London in the needs element formula: (i) before taking account of any clawback, (ii) after taking account of clawback but not of damping and (iii) after taking account of both.
§ Mr. John SilkinIt may be helpful if I compare London's total needs element entitlement for 1975–76, revalued to estimated out-turn 1976–77 prices, with the sums London would receive for 1976–77 467W on the same price base. If no adjustment were made for London's high rateable resources, the total needs element for London would on this basis be about £303 million higher for 1976–77 than for 1975–76. If, as proposed, a 33⅓ per cent. adjustment of London's rateable resources were made, London's 1976–77 entitlement would be about £110 million higher than for 1975–76.
The proposed "damping"—that is, distribution of two-thirds of the London needs element total in proportion to boroughs' 1975–76 entitlements—has no effect on the size of that total, but only on the sums payable to individual boroughs.
§ Mr. George Cunninghamasked the Secretary of State for the Environment what formula he proposes to use for the distribution as between London boroughs of that part of the RSG needs element which will reflect rateable values.
§ Mr. John SilkinIt is not proposed to include a provision in the Rate Support Grant Order for part of the needs element grant for Inner London boroughs to be distributed in proportion to rateable value.
§ Mr. George Cunninghamasked the Secretary of State for the Environment what will be the cash value of the RSG needs element and resources elements, respectively, for (1) the whole country and (2) London.
§ Mr. John SilkinOn current information I estimate that the figures at estimated 1976–77 out-turn prices will be approximately as follows:
Needs element Resources element £m. £m. All authorities in England and Wales 3,846 1,846 Authorities in London only 740 51