HC Deb 08 April 1987 vol 114 cc256-7W
Mr. Knowles

asked the Secretary of State for the Environment what would be the cost to the taxpayer this year of increasing the proportion of local authority relevant expenditure in England met by Exchequer grant to 60 per cent.

Mr. Chope

If English local authorities were spending at the level consistent with that contained in the 1987–88 RSG Settlement approved by the House on 25 March, and 60 per cent. of this was met by Exchequer grant (the same level as in 1979), the cost to the taxpayer would be equivalent to the yield of about an additional 3.5p on the standard rate of income tax. It seems that actual relevant expenditure is likely to be somewhat higher, so the cost would probably be nearer 4p.

If the taxpayer had been obliged to underwrite 60 per cent. of whatever local authorities had chosen to spend over the years since 1979, local authorities would probably have spent more, and the cost to the taxpayer in 1987–88 would be greater still.

Sir George Young

asked the Secretary of State for the Environment if he will give for each individual London local authority net current expenditure per head of population in 1978–79 and in 1985–86, and the percentage increases in net current expenditure per head of population between 1978–79 and 1985–86 in cash and in real terms.

Mr. Chope

This information is as follows:

Expenditure per head 1978–79 £ Expenditure per head 1985–86 £ Percentage change in current expenditure (cash terms) Percentage change in current expenditure (real terms)
Sutton 177 321 81.4 -4.2
Waltham Forest 220 466 111.8 12.0
ILEA 173 380 119.7 16.2