HC Deb 28 February 1978 vol 945 cc142-3W
Mr. James White

asked the Secretary of State for Scotland if he will make a statement about recalculation of the resources element of the rate support grant for 1974–75.

Mr. Millan

Until 1975–76, the resources element of rate support grant was distributed on actual expenditure incurred by authorities. Grant was initially paid on estimated expenditure and final adjustments were made some time after the end of each financial year when final figures of actual expenditure became available.

On the reorganisation of local government, balances on final accounts of the former authorities and adjustments in grant payments were to be remitted to the new district councils. Balances have been assimilated as they became available but it has not been possible to set in hand the conclusive calculations of grant until recently, since final accounts for all of the principal former authorities were not available.

The working party on local government finance recommended that these calculations be made on the basis of final 1974–75 accounts from principal former authorities and this was agreed with the Convention of Scottish Local Authorities when it met me on 14th October 1977.

I have been pressing for the final accounts for some time but the last final account required for the recalculation was received only on 13th February 1978. Accordingly, the full recalculation, which involves attributing grant adjustments to new district and islands councils is not yet complete. It is now proposed to issue a full list of adjustments in March.

In total the proposed adjustments amount to £7.8 million or 1.3 per cent. of rate support grant payable for 1974–75; for some authorities the amounts involved will be marginal. Adjustments will have to be effected within the total grant made available by Parliament for 1974–75; that is to say, additional payments to some authorities will have to be offset by recoveries from others. I shall discuss arrangements for effecting the payments with the Convention of Scottish Local Authorities at a meeting arranged for 7th April.

Several authorities received preliminary intimation of their position as the calculations progressed. Some authorities, therefore, may have been able to take the adjustments into account in fixing their rate poundage for 1978–79. Since rating decisions have to be taken by the end of this week, I accept, however, that many authorities will not find it possible to take these adjustments into account in fixing their rates and I am not suggesting that they attempt to reopen decisions already taken or imminent. The timing of the redistribution of the grant will be among the matters which I shall discuss with COSLA on 7th April.