§ Mr. McMasterTo ask the Secretary of State for Scotland if he has any plans to review the annuality principle applied to local government finance; and if he will make a statement.
§ Mr. Allan StewartNo.
§ Mr. BeithTo ask the Secretary of State for Scotland how much was raised by local authorities in Scotland in 1990–91 using their discretionary powers to raise £5 per head of adult population, in areas where there is a single tier of principal local authority, and £2.50 per head of adult population, in areas where there are two administrative tiers; and if he has made any assumptions for the likely yield under this power for 1991–92.
§ Mr. Allan Stewart[holding answer 1 July 1991]: In terms of section 83 of the Local Government (Scotland) Act 1973, as amended by schedule 1 to the Abolition of Domestic Rates, Etc. (Scotland) Act 1987, Scottish local authorities have a discretionary power to incur expenditure not exceeding the product of a 2p rate based on 1988–89 rate poundage.
Information about the extent of such expenditure is not held centrally.