§ Mr. Simon Hughesasked the Secretary of State for the Environment if he will set out the timetable under which rate capped local authorities must make their budgets and fix their rates for the year 1985–86; and if he will make a statement.
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§ Mr. WaldegraveAll authorities are required by law to fix a rate or issue a precept. Precepts must be issued at least 21 days before the beginning of the financial year. Rates are normally fixed by 1 April.
§ Mr. Foulkesasked the Secretary of State for the Environment what is the effect of restrictions on capital spending by local authorities on their ability to obtain grants from the European regional development fund.
§ Mr. Kenneth BakerIt is for each local authority to determine its own spending priorities within the total amount of expenditure permitted to it. In doing so, it can take account of the likely availability of receipts from the European Community, including the ERDF, for certain projects.
§ Mr. Foulkesasked the Secretary of State for the Environment what representations he has received regarding the current inclusion of European Economic Community grants in the definition of perscribed expenditure for local authorities; and if he will take steps to exempt European Economic Community grants from this definition.
§ Mr. Kenneth BakerWe have received representations to the effect that, if a local authority is eligible for a grant from the European regional development fund, it should receive an additional capital spending allocation to enable full use to be made of such grants. It would not, however, be appropriate to make an additional allocation in these circumstances. The availability of ERDF receipts, in common with other receipts from the European Community, are taken into account when public expenditure levels are set nationally. Local authorities' capital allocations in aggregate are consequently already higher than they would be without the ERDF.