§ Mr. Chris Smithasked the Secretary of State for Scotland (1) whether he has any plans to bring forward proposals to change the basis of current expenditure controls on local authorities in Scotland;
(2) whether he intends to instigate a review of the present basis of current expenditure controls on local authorities in Scotland; and if he will make a statement.
§ Mr. AncramIn January the Government published the Green Paper "Paying for Local Government: Proposals for Change" (Cmnd. 9714). It reviews the present system of local government finance in Great Britain and in chapter 8 makes proposals for reform of the system in Scotland. An important element of the proposals is the strengthening of local accountability for determining local expenditure priorities. It is envisaged that there will be no continuing need for general grant penalties.