§ Mr. Wareingasked the Secretary of State for the Environment what changes in the system of financing local government he envisages following the report of the Audit Commission on the impact on local authorities' economy, efficiency and effectiveness of the block grant system; and if he will make a statement.
§ Mr. WaldegraveWhen the report was published, my right hon. Friend said that our immediate reaction was that whilst most of its recommendations seem reasonable, we had doubts about a number of arguments on which they were based. We are examining the report in detail. There are no present plans to change the arrangements for distributing block grant. My right hon. Friend announced on 9 October that Department of Environment Ministers would be embarking on a series of studies into various aspects of local government finance, including the rate support grant system.