§ Mr. Hattonasked the Secretary of State for the Environment whether local authority current expenditure for 1977–78 and 1976–77 is in line with the Government's expenditure plans; and if he will make a statement.
§ Mr. ShoreI have today discussed with the Consultative Council on Local Government Finance the annual DOE and CIPFA return of rates. I am sending the statement I made to the Council to all local authorities. The returns show that the outturn for 1976–77 will be in line with what the Government were expecting at the time the 1977–78 rate support grant settlement was made last December. For 1977–78 authorities are planning to spend, in aggregate, some £100 million above the level envisaged in the settlement. That is a smaller reduction than the 1.6 per cent. drop between 1976–77 and 1977–78 envisaged. Authorities are also rating to provide for a slightly higher rate of inflation than was assumed in the cash limit on grant. Increases in domestic rate poundage average the 15 per cent. envisaged in the settlement. The figures for individual types of authorities are as follows:
AVERAGE RATE, POUNDAGE PERCENTAGE CHANGES—1976–77 TO 1977–78 Domestic Average increase Per cent. Non-Domestic Average increase Per cent. London boroughs 8.60 7.44 Metropolitan districts 15.45 11.20 Non-Metropolitan districts (England) 17.27 12.39 Wales 14.16 7.92 England and Wales 14.93 10.34 The Government recognise that the authorities have made serious and success-full efforts in getting so close to the expenditure target. The final figure may be closer, as experience suggests that the earlier estimates will overstate the eventual outturn. However, in view of the 356W overriding importance of keeping to the public expenditure limits, authorities must contain expenditure by scrutinising their budgets rigorously to eliminate any overspend. That does not mean, however, that the Government are seeking to achieve public expenditure levels lower than those accepted for the rate support grant settlement. While authorities should all seek to economise and eliminate waste it would be contrary to the Government's policy if cuts were made which would endanger the standards of service provision envisaged in the settlement.