§ Mr. Ovendenasked the Secretary of State for Social Services (1) what consideration he has given to the financial effects on other area health authorities in the south-east Thames region of his decision to allow the Lambeth, Southwark and Lewisham area extra time to reduce its expenditure to the levels set by the regional authority; and if he will make a statement;
(2) if, in view of his decision to allow the Lambeth, Southwark and Lewisham area health authority extra time in which to reduce its expenditure to the level set by the south east Thames regional health authority, he will increase the financial allocation to that region for 1978-79 in order that the deprived areas of Kent and East Sussex can still receive the extra 445W finance which the authority had planned to give them in line with the recommendations of the Resources Allocation Working Party.
§ Mr. MoyleIn his reply to my hon. Friend the Member for Lewisham, West (Mr. Price) on 5th July—[Vol. 953, c.226–7]—my right hon. Friend made it clear that he requires the allocations made by the South-East Thames regional health authority to the Kent and East Sussex area health authorities for the 1978–79 financial year to remain as they are.
The cash allocations made to Lambeth, Southwark and Lewisham area health authority (teaching) for the same year will, as the statement also makes clear, be subject to the cash limit rules governing all public expenditure. The cash flow position of the area health authority (teaching) will be examined in the light of the progress made by the authority in the current year towards achieving a reduction of about £3 million in its rate of annual expenditure in the 1979–80 financial year. It is to this end that my right hon. Friend has called for a full report at the half year point.