Rate Support Grant (Warwickshire)

HC Deb 28 October 1988 vol 139 cc423-4W

Mr. Pawsey

To ask the Secretary of State for the Environment to what extent rate support grant to Warwickshire county council has fallen below the rate of inflation for each year since May 1985; and what are the reasons for the shortfall in each year.

Mrs. Virginia Bottomley

The table sets out the amount of rate support grant paid to Warwickshire county council for each year since 1985–86. The figures are shown in both cash and real terms, together with the shortfall each year. 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 1986–87—and authorities' spending decisions.

	1985–86 £ million	1986–87 £ million	1987–88 £ million	1988–89 £ million
Cash	53.777	52.743	53.804	46.098
Constant 1985–86 prices	53.777	51.018	49.550	40.625
Shortfall		2.759	1.468	8.925

Mr. Pawsey

To ask the Secretary of State for the Environment what was the total amount of rate support grant paid to Warwickshire county council in 1984–85; what was the amount in 1987–88; and if he will express the answer both in actual amounts and in real terms.

Mrs. Virginia Bottomley

Warwickshire county council has received £62.874 million rate support grant for 1984–85 and £53.804 million for 1987–88. In constant 1987–88 prices, the amount received for 1984–85 was £72.350 million.

Mr. Pawsey

To ask the Secretary of State for the Environment how much Government grant in total has been lost by Warwickshire county council as a result of penalties imposed because of overspending.

Mrs. Virginia Bottomley

Grant abatement was a feature of the rate support grant system from 1981–82 to 1985–86. Expenditure guidance was issued to local authorities each year and those spending above target were liable to abatement of block grant (holdback). The only year in which Warwickshire county council lost grant as a result of spending above the expenditure guidance issued to it was 1983–84, when holdback amounted to £0.551 million.