Local Authority Capital Expenditure (Hansard, 30 November 1987)

§ Mr. Peter Walker

Following the autumn review of public expenditure I have decided to increase total gross provision for local authority spending in 1988–89 in Wales to £416 million. This is £15 million (3.7 per cent.) more 403W than the comparable provision predicted for 1988–89 in last year's public expenditure round, an increase of £5.5 million (1.4 per cent.) over 1987.88 and an increase in real terms of 16 per cent, since the present capital control system was introduced in 1981–82.

My decisions for 1988–89 indicate my priorities for expenditure on services including increases in gross provision for housing (7 per cent.) education (10 per cent.) and the urban programme (15 per cent.)

The increased provision for housing has been set aside for use to encourage local authorities in the cost-effective programmes of enveloping and block repair and to continue the priority estates programme and also to enable local authorities and housing associations to carry forward housing projects for special initiatives in the valleys.

Allowance has also been made in the urban programme for special valleys projects. I shall be announcing my policies for dealing with the special problems in the valleys early in the new year.

In further increasing the provision for education I am recognising the need to improve the fabric of school buildings and also to invest in schools rationalisation projects which will release revenue resources for use elsewhere in the education service.

Local authorities are being notified today of their individual allocations on both housing and non-housing services including major road schemes (£39 million) and projects of regional or national importance or special projects (£10 million). The overall total for allocations is £338 million.

Details of the allocations for individual authorities have been placed in the Library. Allocations for schemes under the urban programme, totalling £29.5 million, will be announced shortly.