§ Mr. Shersby asked the Secretary of state for Transport when he will announce his proposals for the levy on London's ratepayers in support of his grants to London, Regional Transport for 1986–87; and if he will make a statement.
47W§ Mr. RidleySection 13 of the London Regional Transport Act 1984 empowers me to make a levy on London ratepayers to recover up to two-thirds of the cost of my total grants to London Regional Transport. I have today laid before Parliament a draft levy order, which is subject to affirmative resolution. This provides for a levy in 1986–87 of 9.79 pence in the pound which is estimated to raise £193.6 million. This is equivalent to 65.6 per cent. of my estimated expenditure on grants to LRT in 1986–87 of £295 million, the balance of £101.4 million being found from the Exchequer.
By comparison with 1985–86 these proposals represent a reduction in grant of £28 million and a reduction in the call on ratepayers of £18.4 million. The burden on the ratepayers falls by slightly more than a penny in the pound, while the proportion of expenditure they fund has been held constant.
My proposals reflect London Regional Transport's major achievements to cut costs while providing more efficient and responsive pubic transport services in the capital. My proposals sustain an increased programme of investment, directed mainly at cost-saving projects and modernisation of the system, and provide £5 million for the funding by LRT of Dial-a-Ride services for the disabled.
Further details of LRT's proposals for 1986–87 are given in its annual business plan which I understand is being published today. Copies will be made available to hon. Members.