HC Deb 30 June 1983 vol 44 cc146-7W
Mr. Dewar

asked the Secretary of State for Scotland if he will recalculate the terms of appendices a, b and c attached to the letter sent by his Department to Glasgow district council on 5 May, dealing with the exercise of his powers under section 5 as amended of the Local Government (Scotland) Act 1966 to exclude in each year expenditure on the urban programme; if he will express the figures at constant November 1982 prices; and if he will break these figures down in each year to show the debit or credit included for temporary loan interest and the balance being spent on the provision of services.

Mr. Ancram

Expenditure on the urban programme is already excluded from the 1983–84 figures in appendix A to the Scottish Office letter of 5 May 1983. It is not readily possible to exclude it from guideline figures for 1982–83 and it is not possible to exclude it from previous years' guidelines. Urban programme expenditure is already excluded from the expenditure figures in appendices B and C. The figures in appendix A are expressed in November 1982 prices up to 1982–82; and thereafter in cash because guidelines after that date are expressed in cash. The expenditure figures in appendix B are already expressed at November 1982 prices.

The council's expenditure for the years 1978–79 to 1983–84, at November 1981 prices, showing temporary loan interest and the balance being spent on services, is as follows:

Mr. Ancram

The client group approach was used in calculating the assessment of expenditure need for Glasgow district of £51.76 million. The current expenditure guideline for Glasgow district council for 1983–84 is £66.34 million. The method used for calculating current expenditure guidelines for 1983–84 is set out in Scottish Office finance circular No. 19/1982 issued on 19 November 1982, its addendum of 26 November 1982 and the additional information provided to local authorities on 1 March 1983. Copies of the circular are in the Library of the House.

Mr. Dewar

asked the Secretary of State for Scotland what figure is included in the guideline calculation for the year 1983–84 for temporary loan interest in the case of the Glasgow district council; and how this compares with the figure in the budget for 1983–84 submitted to the Secretary of State for Scotland by Glasgow district council.

Mr. Ancram

In the calculation of the assessed need figure underlying Glasgow district council's current expenditure guideline for 1983–84, a figure of £363,000 —credit—was included for interest on revenue balances. The District Council's budget for 1983–84 included a figure of £2.55 million—debit—for this item.

Mr. Dewar

asked the Secretary of State for Scotland (1) if he will recalculate appendices a, b and c attached to the letter sent by his Department to Glasgow district council on 5 May, dealing with the use of his powers under section 5, as amended, of the Local Government (Scotland) Act 1966 excluding the £4 million for housing environmental improvement grants included in the budget returns by Glasgow district council submitted to the Secretary of State for the financial year 1983–84;

(2) if he will recalculate appendices a, b and c attached to the letter sent by his Department to Glasgow district council on 5 May, dealing with his decision to use his powers under section 5, as amended, of the Local Government (Scotland) Act 1966 excluding the £4 million for housing environmental improvement grants included in the budget returns by the Glasgow district council submitted to the Secretary of State for the financial year 1983–84 and the 5.3 million for area budgets included in the same returns.

Mr. Ancram

No. The appendices to the Scottish Office letter of 5 May 1983 initiating selective action under section 5 of the Local Government (Scotland) Act 1966 were based on the information provided by Glasgow district council in its budget return for 1983–84. The points made subsequently by the district council in its representations about this information have been taken fully into account in reaching the decision on further action under section 5 of the 1966 Act.

Mr. MacKenzie

asked the Secretary of State for Scotland if he will publish in the Official Report or deposit in the Library his specific reasons for instructing the Glasgow district council to reduce the rate levied.

Mr. Younger

I am today placing in the Library of the House a copy of the letter sent on 5 May 1983 to Glasgow district council which sets out the grounds for my decision to initiate selective action under section 5 of the Local Government (Scotland) Act 1966 and propose a reduction of 5p in the council's rate for 1983–84. I am also placing in the Library a copy of the letter of 29 June sent to Glasgow district council in which I propose, in the light of representations, a reduction of 3p.

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