§ 52. Mr. Marksasked the Secretary of State for the Environment what estimate he made of the effect of the change in the rate support grant system on the grant to the city of Manchester; and whether he has revised that estimate.
§ Mr. KingBlock grant payable to Manchester in 1981–82 was estimated last December to be £110 million, on the assumption that the city would spend in line with the Government's expenditure plans. This was about £8 million less than the city's share of the sum of needs and resources element grant that would have been paid in 1981–82 if the old system had continued. Following receipt of budget returns from all authorities and my right hon. Friend's statement of 2 June, the city's grant entitlement is now estimated to be about £111 million unless it becomes necessary, in the light of local authority revised budgets to implement a holdback of grant. In that case since on present expenditure plans the city is substantially above its expenditure target its grant entitlement would be reduced by about £8½ million.