§ Mr. Dicksasked the Secretary of State for Transport when he will announce his proposals for the levy on Londons' ratepayers in support of his grants to London Regional Transport for 1987–88.
§ Mr. MooreSection 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 1987–88 of 7.77p in the pound, which is estimated to raise £156.9 million. This is equivalent to 65.6 per cent. of my estimated expenditure in 1987–88 on grants to LRT, which amount to £239 million; the balance of 82.1 million will be found from the Exchequer.
By comparison with 1986–87 these proposals represent a reduction in grant of £56 million and a reduction in the call on ratepayers of £36.7 million. The burden on ratepayers falls by slightly more than 2p in the pound, while the proportion of expenditure they fund has been held constant.
My proposals reflect London Regional Transport's achievements in cutting costs while providing a more efficient and attractive public transport service in the capital. LRT has proposed for 1987–88 a further cut in the revenue deficit to £58 million, and within that sum I have been able to increase to £6 million the provision for funding Dial-a-Ride services for disabled people. Investment will continue at a high level and will include expenditure on new Underground trains which I approved in September and crime prevention measures which were announced on 28 November.
Further details of LRT's proposals for next year are given in its annual business plan, which will be published shortly. Copies will be placed in the Library.