§ Mr. MaxtonTo ask the Secretary of State for Scotland if he will set out the total amounts paid by central Government as rates rebates, community charge rebates 415W and transitional relief for every year since 1975, including an estimate for 1990–91 and 1991–92, in cash and real terms and as a proportion of total local government spending.
§ Mr. Allan StewartFigures for transitional relief, community charge reduction and total local government spending since 1 April 1989 are provided in the table. Rates rebates and community charge rebates are a matter for the Department of Social Security.
Local government spending1 Cash Real Terms (1991–92 prices) £ million £ million 1989–90 4,728 5,451 1990–91 5,179 5,541 1991–92 5,666 5,666 1 Figures are of total current expenditure financed by grants, community charge, non-domestic rate income and balances. The 1989–90 figure is the final outturn. The 1990–91 figure is the provisional outturn. The 1991–92 figure is the budget estimate.
Transitional relief/community charge reduction1 Cash Real Terms (1991–92 prices) Percentage of Local government spending £ million £ million 1989–90 7.9 9.1 0.2 1990–91 63.0 63.0 1.2 1991–92 43.0 43.0 0.7 1 In Scotland the transitional relief scheme has been replaced, with backdated effect to 1 April 1990, by the personal community charge reduction scheme. The 1989–90 figure shows payments to date and may be subject to variation. The 1990–91 figure is an estimate of expenditure on the reduction scheme and updates expenditure already made on transitional relief. The 1991–92 figure is an estimate which takes account of the £140 general reduction in charges.
§ Mr. Bill WalkerTo ask the Secretary of State for Scotland what action he proposes to take in the light of local authorities' budgets for 1991–92; and if he will make a statement.
Rate fund services: Revenue income1 Domestic rates2 3 Non-domeslic rates2 3 Government grants Rents, local charges and other income4 Total income per cent. per cent. per cent. per cent. per cent. 1974–75 11 14 60 15 100 1975–76 14 19 62 5 100 1976–77 12 18 64 6 100 1977–78 13 19 62 7 100 1978–79 10 21 61 8 100 1979–80 10 21 60 8 100 1980–81 11 23 59 7 100 1981–82 12 26 55 7 100 1982–83 13 27 53 7 100 1984–84 11 26 56 8 100 1984–85 11 26 55 8 100 1985–86 12 27 53 8 100 1986–87 12 28 51 8 100 1987–88 13 29 51 7 100 1988–89 14 27 51 8 100 1 Totals may not be exactly equal to the sum of their constituent parts due to rounding. 2 Excluding rate rebates and domestic element of rate support grant. Includes net cost of collection of rates. 3 The breakdown of rate income into domestic and non-domestic rate income is estimated pro-rata to rateable values. 4 Includes rents, sales, fees and charges. Source: Scottish Local Government Financial Statistics (various years).
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§ Mr. LangLocal authorities in Scotland have budgeted to increase their expenditure this year by £420 million or 9.4 per cent. over the provisional outturn figures for last year. Overall authorities plan to spend £119 million or 2.5 per cent. in excess of the 1991–92 grant-aided expenditure—GAE—figures.
While this represents an improvement on the position last year when the average excess over GAE was 4.6 per cent., I remain concerned about the burden facing local taxpayers in certain areas as a result of the spending plans of the authorities concerned. Among the regional councils—which, of course, account for the bulk of local government expenditure in Scotland—the authority planning by far the most substantial spending excess—12.18 per cent. above GAE—is Lothian. I have accordingly decided to initiate action in terms of schedule 3 to the Abolition of Domestic Rates Etc. (Scotland) Act 1987 in respect of that authority, on the grounds that its planned expenditure for 1991–92 is excessive and unreasonable. A letter has today been sent to the council proposing a reduction of £50—that is, from £310 to £260—in its personal community charge for this year—the equivalent of a reduction in its planned expenditure of £25 million. The letter invites the council to make representations.
§ Mr. MaxtonTo ask the Secretary of State for Scotland if he will give the proportion of total local government spending financed by(a) the rates/community charge, (b) non-domestic rates, (c) Government grants and (d) rents and local charges in Scotland in each year since 1974.
§ Mr. Allan StewartThe percentages of total local government income from each source to finance rate fund services is shown in the table. Figures for 1989–90 and 1990–91 are not yet available. Figures exclude transactions on housing revenue accounts. Total local government income shows slight differences from total local government expenditure because of the use of balances in financing expenditure.