§ Mr. Cartwrightasked the Secretary of State for the Environment if he will give, for each year from 1971–72 to 1981–82, the percentage of local government expenditure met by central Government grant (a) as announced at the time of the rate support grant settlement for that year and (b) that actually occurred.
§ Mr. KingFollowing is the available information:
England and Wales Aggregate Exchequer Grant at Settlement; as Percentage of Relevant Expenditure Grant as Percentage of Relevant Expenditure at Outturn 1971–72 57½ * 1972–73 58 * 1973–74 60 * 1974–75 60½ 62.3 1975–76 66½ 66.0
Inflation allowance in cash limits in main Rate Support Grant Order per cent.
Rate Support Grant (Increase) Order per cent.
Estimate of Actual inflation* per cent.
Local Authority Relevant Expenditure (England and Wales)† November 1975 to 1976–77 7.0 7.5 9.4 November 1976 to 1977–78 8.0 4.6 5.5 November 1977 to 1978–79 6.9 8.6 9.0 Local Authority Current Expenditure (England and Wales)‡ November 1978 to 1979–80 6.6 13.5 15.3 November 1979 to 1980–81 18.3 18.3 21.7 November 1980 to 1981–82** ‡‡6.7 n.a. n.a. * Derived from increase orders. † Between 1976–77 and 1978–79, the cash limit factors cover the whole of relevant expenditure (current expenditure plus net loan charges, rate fund contributions to HRA, and revenue contributions to capital outlay). It was realised that there were certain variations in cost (eg. loan charges) that were particularly uncertain, and that the cash limit and cash limit factors could be varied as necessary, to take account of actual inflation in these items. ‡ Since 1979–80, the announced cash limit factors have been based on government assumption of pay and price increases within current expenditure (wages and salaries and running expenses). The factors have not therefore been adjusted for variations in interest rates etc., in respect of which separate adjustments are made. ** England only. †† Inflation allowances of 6 per cent, for pay settlements on due dates and 9 per cent, for running expenses.
§ Mr. Alfred Morrisasked the Secretary of State for the Environment what sources his Department uses to assess the numbers at risk or in need pertinent to determining the rate support grant.
§ Mr. KingI refer the right hon. Member to my Department's publication, "Grant-Related Expenditure:
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England and Wales Aggregate Exchequer Grant at Settlement; as Percentage of Relevant Expenditure Grant as Percentage of Relevant Expenditure at Outturn 1976–77 65½ 64.8 1977–78 61 62.2 1978–79 61 61.3 1979–80 61 60.0 1980–81 61 †58.3 England 1981–82 59.1 * * Not readily available. † Provisional.
§ Mr. Cartwrightasked the Secretary of State for the Environment if he will give figures for each year since cash limits were introduced on rate support grant to local authorities up to 1981–82, the figure for inflation allowed for when the cash limit was set, the revised figure allowed for when the supplementary rate support grant order was made for the year in question and the inflation which actually occurred.
§ Mr. KingFollowing are the cash limit factors applied at the main order, the allowance for inflation at increase order stage two years later, and estimates of the actual rate of inflation as it affected local authorities
How the Expenditure Needs of Local Authorities are Assessed for Block Grant 1982–83", copies of which are available in the Library.