§ Mr. Moynihanasked the Secretary of State for Education and Science what expenditure level he proposes to set for the new Inner London education authority in respect of 1986–87.
§ Sir Keith JosephI propose to determine an expenditure level of £902 million for the new ILEA, which under the provisions of the Local Government Act 1985 will be automatically subject for three years to designation under part I of the Rates Act 1984. This sum represents a cash reduction of 1.5 per cent. on the budgeted total expenditure of the present ILEA in 1985–86 as adjusted. The adjustment allows for the new authority's responsibilities in respect of the Geffrye and Horniman museums, and also an estimate of the reduction in the authority's total expenditure which will result from my proposal to introduce a new contribution formula for the advanced further education pools. This adjustment will ensure that the ratepayers of Inner London receive the benefits of a new formula in the shape of a lower precept than they would otherwise have paid. In so far as ILEA's 643W 1985–86 financial reserves are increased as a result of changing the formula this can of course be taken into account in setting the 1986–87 precept limit.
Notice of the expenditure level which I determine will be formally served on the interim ILEA as soon as it is constituted under the Local Government Act 1985. However, the present ILEA is being informed today of what I propose.