Local Government Finance

HC Deb 31 October 1990 vol 178 cc549-50W

Mr. Gwilym Jones

To ask the Secretary of State for Wales at what level he proposes to set the totals of revenue support grant and the distributable amount of non-domestic rates for Welsh local authorities in 1991–92.

Mr. David Hunt

I announced on 23 July that I proposed to set the total of aggregate external finance—the level of central Government support for local authority revenue spending—at £1,939 million, an increase of 11.2 per cent. over the comparable level for 1990–91. This support comprises three component elements: the NNDR distributable amount, the total of relevant specific grants, and revenue support grant.

My officials are today sending to Welsh local authorities for purposes of consultation my proposals for these component amounts. I am placing a copy of that letter in the Library. I intend to specify as the distributable amount from the non-domestic rating pool £525 million. In arriving at that amount I have estimated that the Welsh national non-domestic rate multiplier for 1991–92 will be 40.8p; but my final decision on this must await parliamentary approval of the Welsh revenue support grant report.

I am proposing that relevant specific grants towards local authority revenue expenditure will total £174.6 million. Details of the proposed distribution of that total among the various specific grants are set out in the consultation letter.

I further propose that the total of revenue support grant should be £1,239.4 million, of which I propose that £1,2382 million should be paid to Welsh county and district councils and £1.2 million should be paid to certain specified bodies, in the amounts shown in the consultation letter.

I will shortly be notifying the Welsh local authority associations of my proposals for the distribution and population reports.

Mr. Gwilym Jones

To ask the Secretary of State for Wales if he has proposals for community charge capping of Welsh authorities in 1991–92.

Mr. David Hunt

I have today written to the Welsh local authority associations about their budgets for 1991–92. I am placing a copy of that letter in the Library.

Mr. Gwilym Jones

To ask the Secretary of State for Wales if he will announce the results of consultation on "The Standard Community Charge and Other Matters: A Consultation Paper for Wales"; and if he will make a statement.

Mr. David Hunt

I indicated to the House on 23 July that I was consulting on a number of changes which I proposed to make in Wales as a result of our review of the operation of the community charge. A copy of the consultation paper was placed in the Library of the House.

In Wales, 22 responses were received from local authorities and other interested organisations and individuals. The proposals contained in the consultation paper were generally welcomed, and, in the light of those responses, I will be introducing regulations shortly to bring the changes into effect.

There is only one substantive change to the proposals concerning the standard community charge. I have decided that, in the case of the proposals relating to people who are subject to the standard community charge but who have their sole or main residence in job-related accommodation, the maximum multiplier should be a half, rather than one. All other maximum multipliers for the standard charge will be set as proposed. The regulations will take effect from 1 April 1991.

Further regulations will be brought forward to implement the proposals on billing following a change of address, costs of summonses, notifications of entry on the community charge register and attachment of earnings orders. Regulations to implement the proposals on foreign language assistants are already in force.

I also intend to implement the proposal, which was widely welcomed, whereby additional protection will be given to occupiers of small composite properties—such as the shop with living accommodation over—in respect of their business rate liabilities. From 1991–92 the maximum year-on-year increase in real terms in the business rate for these properties will be 10 per cent. rather than 15 per cent. at present.

A further announcement will be made about the treatment of bed-and-breakfast accommodation in the rating system, following consideration of the responses to the recent separate consultation exercise.