§ Mr. HinchliffeTo ask the Secretary of State for the Environment what level of local government staffing and pay are anticipated in the Government's expenditure plans 1988–89 to 1990–91; and if he will make a statement.
§ Mr. ChopeThe Governmenfs expenditure plans for 1988–89, 1989–90 and 1990–91 (Cm. 288 published in January) provided for local authority current expenditure in England of £27,538 million, £28,500 million and £29,360 million respectively. The plans for 1989–90 and 1990–91 were based on the figure for 1988–89 uprated by the GDP deflator then forecast in each year; they thus provided for spending to be broadly level in real terms. The 1988–89 figure is that provided for by the Secretary of State in the rate support grant settlement for that year. On 7 July the Secretary of State announced a proposal that provision for the 1989–90 settlement should be £29,140 million, an increase of about £1–4 billion over Cm. 288 after deducting the cost of polytechnics, which from April 1989 will be the responsibility of central Government. In making provision for a particular year the Secretary of State takes into account, as he is required to do by statute, the latest information about the rate of local authority relevant expenditure; possible fluctuations in demand for services which are not under local authority control; the need for developing those services and the extent to which, having regard to general economic conditions, he considers it reasonable to develop them; and the level of prices costs and remuneration.