§ 216. Mr. Gwilym JonesTo ask the Secretary of State for Wales when he will make known his plans for local authority capital expenditure for 1990–91.
§ Mr. Peter WalkerFollowing the autumn review of public expenditure, I have decided to issue, in accordance with the new planning total arrangements, capital grant and credit approvals to local authorities in 1990–91 amounting to £414.3 million.
In addition, there is no limit being set on the amount district councils can spend on mandatory home renovation grants next year. I have already provided £75 million for this purpose. Additional resources will be made available if local authorities spend beyond this level.
My proposals include priority for investment in personal social services and transport; gross provision for both is being increased by 16 per cent. in real terms. The increase in personal social services provision reflects the need for local authorities to provide services for the rising number of the elderly as well as to provide for the shift in the burden of care in the mental health services from the NHS to local authorities. The increase in transport provision allows for three major road schemes to progress.
The new arrangements for capital expenditure embodied in part IV of the Local Government and Housing Act 1989 enabled local authorities to enhance the spending authorised by grant and credit approvals by the use of capital receipts not required for debt redemption and by an unfettered use of contributions from revenue.
256WAssuming they continue previous trends in spending from these sources, total spending in the year will be of the order of £475 million. This compares with an equivalent total gross provision in 1989–90 under the previous capital control system of £444 million; and represents an increase of around £30 million.
Within the total for housing, £38.5 million has been set aside for highly cost-effective group repair schemes and to complete approved enveloping schemes; to support renewal areas; to support the priority estates programme (to improve the quality of the housing service to the customer in council estates); to help rural authorities with a high concentration of rural homes and to assist specific homelessness projects. In addition, £10 million has been distributed to authorities in the form of supplementary credit approvals for discretionary home renovation grants.
Local authorities are being notified today of their individual annual capital guidelines and basic credit approvals on all services including supplementary credit approvals and grant in respect of major road schemes (£51 million) and projects of regional or national importance and special projects (£14.7 million).
The distribution of urban programme capital resources, totalling £24.9 million, will be announced shortly.
Details of the allocation of resources to individual authorities have been placed in the Library.