HC Deb 15 December 1976 vol 922 cc724-5W
29. Mr. Lambie

asked the Secretary of State for Scotland what, in money terms, is the difference between the rate support grant in 1976–77 and the 68.5 per cent. of the local authorities' relevant expenditure for 1977–78.

Mr. Millan

The Rate Support Grant (Scotland) Order 1976, if approved, will provide for rate support grants of £882.8 million in 1977–78. These may be increased next year to take account of cost increases within a cash limit of £69 million. Last year's order provided for rate support grants of 882.7 million in 1976–77, which the 1976 order would increase to £875.3 million to take account of increased costs.

Mr. Sillars

asked the Secretary of State for Scotland what was the value of the rate support grant in 1974; and what is the value of his present proposal at 1974 prices.

Mr. Millan

The Rate Support Grant (Scotland) Order 1974 fixed the total of the rate support grant in 1974–75 at £412.02 million at November 1973 prices. The amount of the grant for 1977–78 prescribed in the Rate Support Grant (Scotland) Order 1976, as laid before the House on 6th December 1976, is approximately £464 million on the same price basis.

Mr. Sillars

asked the Secretary of State for Scotland what alteration he has made to the formula of the rate support grant; and what benefit the changed formula will bring to rural districts and urban districts.

Mr. Millan

The Rate Support Grant (Scotland) Order 1976, which was laid in draft before the House on 6th December, alters the rate support grant distribution formula so as to increase by about 10 per cent. compared with 1976–77—the proportion of needs element paid in total to district councils. The order also provides that the distribution of the district councils share will be more closely related to local circumstances. Details are given in the report on the order.