§ Mr. MartlewTo ask the Secretary of State for the Environment if he will consider announcing criteria for rate capping for 1989–90 as part of the 1988–89 rate support grant settlement so that authorities are fully aware of the consequences of the decisions they take in setting their 1988–89 budgets.
§ Mr. MartlewTo ask the Secretary of State for the Environment what assessment he has made of the implications for local government financial planning of local authorities' uncertainty as to the criteria to be used for rate capping until after they have set their budgets.
§ Mr. ChopeMy right hon. Friend's main concern is with the implications for ratepayers of excessive spending by certain local authorities. Under the Rates Act 1984 he has selected the most excessive spenders for rate or precept limitation. But this is a small proportion of local councils and none which budget to spend prudently need be concerned.
§ Mr. MartlewTo ask the Secretary of State for the Environment why rate capping criteria are not announced until after local authorities' budgets are set.
§ Mr. ChopeThe timetable followed by my right hon. Friend allows him to take into account, as required by the Rates Act 1984, the general economic conditions, including the likely level of local government spending, at the time that he designates authorities for rate or precept limitation.
§ Mr. MartlewTo ask the Secretary of State for the Environment if he will make it his policy that authorities not previously rate capped and spending in 1988–89 at or below the expenditure levels assumed in his recent consultation paper will not be rate capped in 1989–90.