§ Mr. BlunkettTo ask the Secretary of State for the Environment (1) by how much the safety net grant of gaining authorities is reduced from when there is no limit where the maximum contribution to the community charge safety net is(a) £75 per adult, (b) £70 per adult, (c) £50 per adult, (d) £25 per adult, and (e) £10 per adult, on the assumption of a self-financing safety net;
(2) how much additional Exchequer grant would be required if the maximum contribution were to be (a) £70 per adult, (b) £50 per adult, (c) £25 per adult and (d) £10 per adult on the assumption of no reduction in the community charge safety net grant to local authorities gaining from the safety net.
§ Mr. GummerThe information requested is provided in the table on the basis of 1988–89 figures. If the cost of limiting contributions to the safety net were funded by Exchequer grants it would be as shown in column I. Alternatively, safety net grant receipts could be reduced by an equal amount per adult in receiving areas up to the point at which they no longer receive transitional protection. The maximum reduction in safety net grant per adult is shown in column 2.
Cost in 1988–89 of limits on contributions to safety nets Column 1 Column 2 Contribution limit cost Maximum cost £ £million £per adult 75 114 8 70 134 9 50 254 18 25 529 48 10 769 114
§ Mr. BlunkettTo ask the Secretary of State for the Environment, for which of the following charges in local authority functions or duties the community charge safety net will make distributional adjustments(a) ring fencing of the housing revenue account, (b) abolition of the Inner 632W London education authority, (c) capital financing charges consequent on the new capital control system, (d) pension contributions consequent on the charges being proposed, (e) costs of community charge collection, (f) costs of community charge rebate and rebate administration and (g) continuing costs of maintaining the community charge register.
§ Mr. GummerMy right hon. Friend has not taken final decisions on the safety net.
§ Mr. BlunkettTo ask the Secretary of State for the Environment if he has identified all the possible options for needs assessments under the new grant system; and if he will make a statement on which he proposes to adopt.
§ Mr. GummerWe are examining a number of possibilities for each service block, including those proposed by the local authority associations. Proposals will not be finalised until the autumn.
§ Dr. CunninghamTo ask the Secretary of State for the Environment what is his estimate of the level of community charge for spending at needs assessment for each local authority which would apply in 1989–90 if the proposed local government finance system were in operation; and what assumptions are made to arrive at that answer.
§ Mr. Ridley[holding answer 12 July 1989]: I refer the hon. Member to my reply to him of Monday 26 June, Official Report, Vol. 155, col. 347.
The detailed assumptions underlying that answer were:
£ million Total GRE 27,662 Revenue support grant 9,394 Non domestic rate pool 9,516 Total adult population 36.4
§ Mr. BlunkettTo ask the Secretary of State for the Environment what mechanisms he intends to use for safety-netting the introduction of the community charge.
§ Mr. GummerMy right hon. Friend has not made final decisions on the form of the safety net.