HC Deb 12 November 1984 vol 67 cc130-1W
Mr. Wood

asked the Secretary of State for the Environment what change he proposes to make in the cash limit for rate support grants, England, class XVIII, vote 1

Mr. Kenneth Baker

Subject to parliamentary approval of the necessary supplementary estimate, the cash limit for class XVIII, vote 1 will be increased by £21,000,000 from £8,848,000,000 to £8,869,000,000. Provision on this vote is not classified as public expenditure. This increase is required in order to reflect fully:

  1. (a) the abatement of block grant in respect of 1984–85 by £452,000,000 authorised by the Rate Support Grant Supplementary Report (England) 1984–85 (approved by by the House on 18 July 1984);
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  2. (b) the increase by £45,000,000 in block grant payable in respect of 1982–83 authorised by the Rate Support Grant Supplementary Report (England) (No. 2) 1982–83 (approved by by the House on 18 July 1984);
  3. (c) the recovery of £44,000,000 block grant in respect of 1983–84 authorised by the Rate Support Grant Supplementary Report (England) (No. 2) 1983–84 (approved by the House on 20 March 1984).

It also takes account of a further abatement of grant entitlement for 1984–85 of an estimated £3,000,000, in the light of an adjustment to the total budgeted expenditure figures received from local authorities. This is subject to the approval of another rate support grant supplementary report for 1984–85, which my right hon. Friend hopes to lay before the House in December.

The cash limit reduction which my right hon. Friend announced on 14 June 1984 anticipated an overall reduction in grant payable in 1984–85 of £475,000,000 from £9,323,000,000 to £8,848,000,000.