§ Mr. MichaelTo ask the Secretary of State for Wales what provision is built into his allocation of finance to health authorities in Wales for 1990–91 to allow for inflation.
§ Mr. GristThe allocations to health authorities in Wales for 1990–91 which my right hon. Friend announced on 11 January take account of the 5 per cent. forecast of general inflation which was given by my right hon. Friend the Chancellor of the Exchequer in his Autumn Statement. However, it is for each authority to make its own assessment of the prospective effect of pay and price rises on its own mix of staff and non-staff expenditure in the light of this forecast when planning its budget. This process will be assisted by the recent determination of pay 133W increases for staff covered by the review bodies' arrangements as announced by my right hon. Friend the Prime Minister on 1 February and by the additional £11 million provision which is being made available to authorities in Wales in recognition of the excess costs of these awards over the provision for forecast general inflation within authorities' original allocations for 1990–91.