Rate Support Grant

HC Deb 03 March 1977 vol 927 cc287-9W

Mr. Speed

asked the Secretary of State for the Environment how the determination of the needs element of the rate support grant for 1977–78 differed from that for 1976–77.

Mr. Freeson

I would refer the hon. Member to Appendix E of the Report on the 1976 Rate Support Grant Order. The basic method of determining needs element entitlements for 1977–78 remains as for 1976–77. The main differences are, first, an extension of the range of needs factors; secondly, a new system for stabilising year-on-year changes in local authorities' expenditure needs; and thirdly, the incorporation of arrangements for London rate equalisation into the calculations for London's needs grant distribution within the RSG Order provisions.

Mr. Speed

asked the Secretary of State for the Environment what factors in the determination of the needs element of the rate support grant for 1977–78 produced a settlement for Dudley which was materially different from those for Wolverhampton and Sandwell.

Mr. Freeson

The differences in needs grant entitlements as between individual authorities reflect the varying incidence of the factors within the needs formula set out in the Rates Support Grant Order. In the particular cases mentioned the metropolitan borough of Dudley has a lower incidence than the other two authorities for all the factors in the formula except for those covering persons living in parishes and wards with a density greater than 50 per hectare, new dwellings and pupils over 16 in secondary schools.

Mr. Speed

asked the Secretary of State for the Environment what new factors were taken into account for the purpose of determining the needs element of the rate support grant for 1977–78.

Mr. Freeson

The following new factors were tested for possible inclusion in the formula for the distribution of the needs grantPersons in excess of 5 per acre Persons in excess of 10 per acre Persons in excess of 15 per acre Geographical variations in labour costs Unemployment Road mileage Ratio of population to housing stock Families with three or more children Children aged 5 to 14 Children under 15

Also the factor for education units was, split into its component parts, namely: Primary-school children; Secondary-school children under the age of 16; Secondary-school pupils over the age of 16; and Pupils in non-advanced further education' establishments.