§ Mr. Cohenasked the Secretary of State for the Environment what are his proposals for an extension of the existing London rate equalisation scheme; if he will now estimate the rise in the resources available to the scheme necessary to avoid a rise in the rates levied by each London borough if the Greater London council is abolished; and what is the proportion of the cost to be met by the central Government.
§ Mr. WaldegraveWe have made it clear that it will be necessary to extend the London rate equalisation scheme (LRES) when the GLC is abolished to avoid windfall gains for ratepayers in the high resource authorities in central London at the expense of ratepayers elsewhere. It is too early to estimate the size of the necessary extension in 1986–87. The Government do not contribute to the LRES.