HC Deb 21 March 1985 vol 75 c614W
Lord James Douglas-Hamilton

asked the Secretary of State for Scotland whether he has any changes to announce in the cash blocks SO/LA1 and SO/LA2 for 1984–85 which are within his responsibility.

Mr. Younger

Cash block SO/LA1 in 1984–85 is being reduced by £3.429 million. The limit for this block—which includes all Scottish local authority capital expenditure within my responsibility on services other than housing—was set at £391.117 million; the revised cash limit is now £387.688 million. This adjustment reflects the final outturn figure for the same block in 1983–84 which was overspent by £3.429 million or 0.9 per cent. of the revised SO/LA1 cash limit of £385.326 million for that year.

Cash block SO/LA2 is being reduced by £38.257 million. The limit for this cash block—which includes capital expenditure in Scotland on housing by local authorities, new towns, the Scottish Special Housing Association and on schemes financed by the Housing Corporation; and industrial and commercial investment by new towns—was set at £466.753 million for 1984–85. The revised cash limit is £428.496 million. This change comprises three separate reductions:

  1. (i) £20.491 million under the housing expenditure limits arangement by which at the beginning of the year each local authority was set a limit for its contribution from its rate fund to its housing revenue account. Authorities were told that any excess above this limit would result in an equivalent reduction in their capital allocation. Regrettably 23 local authorities exceeded their limits and incurred consequent reductions in their capital allocations. The cash limit requires to be reduced accordingly by the aggregate excess.
  2. (ii) £17.441 million in respect of an overspend on the cash block in 1983–84. An estimate of this overspend was taken into account in setting capital allocations for 1984–85 an no further adjustments to individual housing authorities' allocations are necessary.
  3. (iii) £0.325 million to take account of supplementary provision required on the Class XV, 9 New Towns, Scotland Vote.