Rate Support Grant (Hansard, 14 November 1988)

§ Mr. Allen
To ask the Secretary of State for the Environment what factors he will take account of in setting the rate support grant for Nottingham city council for 1989–90.

§ Mrs. Virginia Bottomley
The Secretary of State's proposals for the 1989–90 RSG settlement are set out in the consultation paper issued on 11 November. Copies have been sent to all local authorities, and have been placed in the Library.

§ Mr. Allen
To ask the Secretary of State for the Environment by what percentage rate support grant(a) to Nottingham city council and (b) to Nottinghamshire county council has changed relative to the rate of inflation for each year since 1979; and what are the reasons for the difference in each year.

§ Mrs. Virginia Bottomley
The information requested is listed below:

Percentage change in rate support grant relative to the rate of inflation¹

Nottingham city council Nottinghamshire county council

1979–80—80–81 -7.1 0.9

1980–81—81–82 —² —²

1981–82—82–83 -0.9 -12.3

1982–83—83–84 4.4 -8.7

1983–84—84–85 -3.5 6.4

1984–85—85–86 10.0 -9.7

1985–86—86–87 9.8 -16.0

1986–87—87–88 -13.1 +9.7

1987–88—88–89 -1.4 -6.2

Notes:
¹ Percentage changes have been calculated after converting cash values of the rate support grant into constant prices using the GDP deflator.
² Not available, as the basis for the rate support grant was different in 1980–81 and in 1981–82.
496W
The percentage changes are based on latest grant entitlements. These are final for the years 1979–80 to 1984–85. The changes in grant from each year to year reflect changes in the total amount of grant available and changes in the distribution of that total between authorities. Changes in grant distribution in turn reflect changes in GRE methodology and data, changes in grant mechanisms—such as the abolition of targets and holdback and steeper slopes of the poundage schedule introduced in the 1986–87—and authorities' spending decisions.

§ Mr. Allen
To ask the Secretary of State for the Environment how much Government grant in total has been lost by(a) Nottingham city council and (b) Nottinghamshire county council as a result of penalties imposed because of over-spending in each of the years since 1979.

§ Mrs. Virginia Bottomley
My right hon. Friend the Secretary of State issued expenditure guidance to local authorities only for the years 1981–82 to 1985–86: those authorities that spend above their guidance figure were subject to grant abatement. The figures requested are set out in the table below. They are based on the latest information available.

Block grant abated due to expenditure in excess of guidance 1980–81 to 1985–86

£ thousand

Nottingham City Nottinghamshire

1981–82 0 19

1982–83 0 15,210

1983–84 30 22,072

1984–85 0 2,147

1985–86 0 0

Percentage change in rate support grant relative to the rate of inflation¹
	Nottingham city council	Nottinghamshire county council
1979–80—80–81	-7.1	0.9
1980–81—81–82	—²	—²
1981–82—82–83	-0.9	-12.3
1982–83—83–84	4.4	-8.7
1983–84—84–85	-3.5	6.4
1984–85—85–86	10.0	-9.7
1985–86—86–87	9.8	-16.0
1986–87—87–88	-13.1	+9.7
1987–88—88–89	-1.4	-6.2

Block grant abated due to expenditure in excess of guidance 1980–81 to 1985–86
£ thousand
	Nottingham City	Nottinghamshire
1981–82	0	19
1982–83	0	15,210
1983–84	30	22,072
1984–85	0	2,147
1985–86	0	0