§ Mr. Alisonasked the Secretary of State for the Environment (1) which local authority services will receive a net increase in real terms in blocks of expenditure provided for in the 1978–79 rate support grant settlement, compared with the settlement for 1977–78;
(2) which local authority services will receive a net decrease in real terms in blocks of expenditure provided for in the 1978–79 rate support grant settlement compared with the settlement for 1977–78.
§ Mr. ShoreIt is for individual authorities to determine their own expenditure patterns in the light of local needs and priorities. Rate support grant is a block grant which is paid in aid of local authority expenditure generally.
§ Mr. Alisonasked the Secretary of State for the Environment what needs criteria were employed in (a) the calculation of regression alayses for 1976–77, 1977–78 grant for 1976–77, (b) the calculation of regression analysis for the rate support grant for 1977–78 and (c) the calculation of regression analysis for the rate support grant for 1978–79.
§ Mr. ShoreThe factors selected in the regression analysis for 1976–77, 1977–78 and 1978–79 are listed in Appendix F to the report on the Rate Support Grant Order 1977 which was laid before the House on 30th November.
§ Mr. Alisonasked the Secretary of State for the Environment what is the basis of the calculation of the safety net for non-metropolitan counties which was introduced into the 1978–79 rate support grant settlement.
§ Mr. ShoreThe comparison on which the calculation is based is between the634W needs element an authority would have received had the 1977–78 distribution arrangements been carried forward to 1978–79, and the authority's entitlements under the 1978–79 distribution arrangements. Where this difference represents a loss, any amount by which the loss exceeds the product of a 2p rate will be met by a specific safety net payment.
§ Mr. Alisonasked the Secretary of State for the Environment if the rate support grant settlement for 1978–79 represents an increase or decrease in real terms over the anticipated outturn relevant expenditure of local authorities in 1977–78.
§ Mr. Alisonasked the Secretary of State for the Environment what is his estimate of local authority balances; and what part that played in his negotiations with local authorities over the rate support grant for 1977–78.
§ Mr. ShoreThe latest estimate of local government balances is £1,350 million The Government was aware of the figures when they decided upon a grant percentage of 61 per cent. and took the view that the average rate increase should be within single figures. But they did not assume that balances could be drawn down by any specific sum.
§ Mr. Alisonasked the Secretary of State for the Environment what changes in levels of local authority staffing during 1978–79 were assumed when the rate support grant settlement was being discussed.
§ Mr. ShoreIt is for individual authorities to settle their own staffing levels in the light of their local needs and circumstances. Overall the effect of the settlement should be broadly that the present level of staffing will be unaffected although obviously there will be different effects in different services and arrears.
§ Mr. Alisonasked the Secretary of State for the Environment how many and which district councils will receive a smaller cash sum in respect of resources element of rate support grant in 1978–79 than they did in either 1976–77 or 1977–78.
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§ Mr. ShoreSince a local authority's entitlement to resources element for 1978–79 will depend on the rates which it decides to levy for that year, no comparison on this basis can be made until rates are fixed in March 1978. However, the fact that the national standard rateable value per head of population will be raised from £173 to £177 will ensure that all qualifying authorities are entitled to receive a higher proportion of their rate borne expenditure by way of grant in 1978–79 than in 1977–78.
§ Mr. Alisonasked the Secretary of State for the Environment which district councils will receive no resources element of rate support grant in 1978–79.
§ Mr. ShoreOnly those districts whose rateable value per head of population exceeds the prescribed national standard of £177, after making an allowance for the relief they give to properties occupied by charities, will not qualify for grant. Until details of charitable rate relief have been received, these districts cannot be identified.
§ Mr. Alisonasked the Secretary of State for the Environment what is the percentage growth in local government relevant expenditure in real terms between 1977–78 and 1978–79 allowed for in the current rate support grant settlement.
§ Mr. ShoreOne per cent. But current expenditure is effectively at the same level as in the 1977–78 settlement.
§ Mr. Alisonasked the Secretary of State for the Environment what alteration he has made in the treatment of rating relief for charities in the distribution of rate support grant; and which authorities will suffer a reduction of resources element in the rate support grant as a result of this.
§ Mr. ShoreFor 1978–79 local authorities will be compensated through the resources element of the rate support grant for the 50 per cent. mandatory rate relief they allow on properties occupied for charitable purposes. In calculating an authority's rateable value per head to determine its grant entitlement, a reduction will be made equal to one half of the rateable value of any property in respect of which this relief was granted for the whole of 1976–77. This small636W change in the distribution arrangements was taken into account in setting the national standard RV per head for 1978–79, and no authority should receive less than its entitlement to resources element as a consequence of this change.
§ Mr. Alisonasked the Secretary of State for the Environment what major wage and salary settlements in local government he expects during the period covered by the 1978–79 rate support grant.
§ Mr. ShoreThe rate support grant settlement for 1978–79 is at November 1977 prices. The major local authority pay settlements to end March 1979 not included in the price base and their operative dates are:
- Manuals, craftsmen and fire—November 1977
- Teachers—April 1978
- APTC—July 1978
- Police—September 1978
- Manuals, craftsmen and fire—November 1978