§ Mr. Wigleyasked the Secretary of State for Wales if he will define the phrase "excessive pay settlement" as used in the letter sent on 21 August by his Department to the North Wales provincial council for local authority services.
§ Mr. Nicholas EdwardsThe level of pay settlements is a key element in the Government's economic strategy. Since pay accounts for around 70 per cent. of local government spending, it is important that settlements for local authority employers should be moderate and at a level the country can afford. In making my proposals for the 1986–87 rate support grant settlement in July I announced that current expenditure provision was estimated to be £1,368 million. The Government are not prepared to increase block support to finance pay awards which cannot be absorbed within this amount.