§ Mr. Peter Bruinvelsasked the Secretary of State for the Environment if he will list the specific reasons why he has rate-capped Leicester city council; and if he will make a statement.
§ Mr. Kenneth BakerMy right hon. Friend has selected Leicester city council for rate-capping in accordance with the principles stated in the "Rate Limitation Report 1984" (HC 589), laid before the House on 24 July 1984. Authorities were selected if it appeared to him at the date of making the report that their budgets for 1984–85 were more than 4 per cent. above their expenditure targets and more than 20 per cent. above their grant-related expenditure assessment — GREA. Leicester's budget of £24.6 million was 4.9 per cent. above its target and 27.7 per cent above GREA.
The rate limit which my right hon. Friend is now proposing for the council is 56.61 per cent. lower than its rate levied for 1984–85 and should be welcomed by Leicester's ratepayers. The council has until 15 January to comment on the rate limit proposed and to draw my right hon. Friend's attention to any relevant information of which he may not be currently aware.