HC Deb 08 May 1984 vol 59 c324W
Dr. Cunningham

asked the Secretary of State for the Environment how many local authorities' total expenditure, by class, did not exceed either their spending target or grant-related expenditure assessment in 1981–82, 1982–83, 1983–84 and for 1984–85 on the basis of the latest available information.

Mr. Patrick Jenkin

The information is as follows: 12 Non-metropolitan counties; 185 Non-metropolitan districts; five London boroughs; and six Metropolitan districts have not exceeded or planned to exceed their grant-related expenditure assessment over the period referred to or have not exceeded or planned to exceed their expenditure target over the same period.

A Government amendment to the Rates Bill to he moved by my noble Friend today in another place would have the effect of excluding from the operation of a general rate limitation scheme, authorities which had not exceeded their GRE for three years and were not planning to do so in their budget for the then current financial year or had behaved similarly in relation to their expenditure target.

This amendment fulfils the undertakings that [ gave to the House during debate on the Report stage of the Rates Bill.

The numbers of authorities presently meeting these criteria may therefore be taken as some indication of the extent of any exclusions which would result from the amendment proposed. However, it remains the Government's intention that the general rate limitation scheme in part II of the Rates Bill should be a reserve power only. As such, it is not possible to speculate on when a scheme might be introduced, or whether the presently available evidence of expenditure performance would be a good guide to likely exclusions from the operation of the scheme at that time. The inclusion within the legislation of precise criteria for exclusion gives to authorities wishing to avoid rate limitation the clearest notice of what will be required. They therefore have the opportunity to manage their affairs so as to avoid general rate limitation.

In assessing whether authorities have exceeded their expenditure guidance, account has been taken of the latest available information on the expenditure to be disregarded for the purposes of section 8(4) of the Local Government Finance Act 1982 for each year except 1984–85 where the necessary figures are not yet available.