§ Mr. James Whiteasked the Secretary of State for Scotland what adjustments he has made to the cash limits on rate support grant to local authorities for 1978–79.
Mr. Milian:In determining the cash limit on rate support grant for 1978–79 the Government accepted that the limits would be reviewed if new legislation were enacted or brought into operation after November 1977 or if changes were made in Government policy which entailed changes in local authority expenditure. Accordingly the cash limit has been increased to take account of the special pay awards to police and firemen, the increase in employers' national insurance contributions from 2nd October 1978, and the decision not to increase the school meal charge due in September 1978. In addition the cash limit has been extended to allow for the loss of rating income from certain iron and steel-making plants in Scotland in accordance with my announcement in a Written Answer on 24th July 1978. A further slight adjustment to the cash limit is necessary in respect of changes in interest rates. Taken together these changes increase the original cash limit of £ 64 million by £ 11.4 million to £ 75.4 million.