HC Deb 07 July 1988 vol 136 cc647-8W
Mr. Gerald Bowden

To ask the Secretary of State for Education and Science what steps he proposes to take to restrain the expenditure of the Inner London education authority.

Mr. Kenneth Baker

I have today laid a report before the House designating the Inner London education

Additional allocations
Local Education Authority Allocation Institution(s) project allowed for
1988–89 (£ thousands) 1989–90 (£ thousands) 1990–91 (£ thousands)
Barnsley 133 Upgrading nursery provision at 4 schools. Improve music facilities at Edward Sheerien School. Security measures at 5 secondary and 15 primary schools.
Birmingham 138 96 Provide indoor toilet facilities at 5 primary schools. Improvement work at Broadway School. Security measures at 10 schools.
Bolton 200 Energy conservation measures at secondary schools. Security measures in some inner city schools.
Bradford 615 440 Improvement work at Grange Road First, Waverley Middle, All Saints CE First, Lilycroft Nursery, Fairfax Upper, and Hutton Middle Schools. Bradford and Ilkley Community College.
Cheshire 62 2 Security provisions at Runcorn Norton Priory County Comprehensive.
Cleveland 102 55 Improvement work at Thornaby CE and West View Primary Schools, Gillbrook, Stapylton, Norton and Brierton Secondary Schools.

authority for precept limitation in the 1989–90 financial year. The principle I have adopted is that ILEA,'s expenditure in 1988–89 is likely to exceed its grant-related expenditure by at least 12.5 per cent. I judge that this is an appropriate criterion for the ILEA. It is the same principle which the Secretary of State for the Environment has adopted in the case of general purpose authorities previously selected for rate limitation. The ILEA's budgeted spending in 1988–89 is more than 60 per cent. above its grant-related expenditure assessment.

I have determined the expenditure level for the ILEA for 1989–90 at £940 million. This represents a cash standstill on the sum which the precept maximum which I set for 1988–89 was intended to raise, once account has been taken of the net reduction in ILEA's expenditure requirement which I estimate will result from the changes in the organisation and funding of local authority higher education provided for in the Education Reform Bill.

The ILEA has today been notified of its designation for precept limitation and of the expenditure level which I have determined. It is open to the authority to apply for redetermination of the expenditure level.