§ Mr. Montgomeryasked the Secretary of State for the Environment when the third rate support grant supplementary report for 1981–82 will be published.
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§ Mr. Patrick JenkinI laid this report before Parliament yesterday, together with the rate support grant supplementary report 1983–84.
The rate support grant supplementary report 1983–84 implements the Government's proposals for holdback of block grant from those authorities who have exceeded the Government's 1983–84 expenditure targets. Authorities' budgets indicate planned overspending above these targets of £771 million in 1983–84, and the reduction in block grant amounts to £280 million. The report excludes from the calculation of holdback certain expenditure under the urban programme.
The report confirms continuing Government efforts to seek expenditure reductions from local authorities, backed by individual expenditure targets and grant reductions for overspending these targets.
The rate support grant supplementary report (No. 3) 1981–82 adjusts grant holdback, and certain expenditure exempted from the calculation, from a budget basis to an outturn basis, now that the necessary outturn data from local authorities is available.
For a number of authorities, the 1981–82 outturn expenditure is below budget and below target. The effect is a reduction of grant holdback from £201 million to £124 million. Both reports also make certain technical changes to the calculation of grant-related expenditure assessments, and minor changes to the aggregate grant and its distribution.
My Department is sending to local authorities copies of each report, and tables showing authorities' new grant entitlements.