HC Deb 26 November 1991 vol 199 cc457-8W
Mr. Gwilym Jones

To ask the Secretary of State for Wales at what level he proposes to set the total of revenue support grant to Welsh local authorities in 1992–93.

Mr. David Hunt

I announced on 23 July that I proposed to set the total of aggregate external finance— AEF—the level of central Government support for local authority revenue spending, at £2.383 million, an increase of 6.7 per cent. over the equivalent amount for 1991–92; but that this figure would be adjusted to reflect the transfer out of local authority control of the six major higher education institutions in Wales, including the Polytechnic of Wales, from 1 April 1992. I have concluded that this adjustment should be confirmed at £34.6 million, the provisional sum I identified in July. I now propose that the level of AEF for 1992–93 should be £2,348.4 million.

A comparable adjustment will be made to the level of total standard spending of £2,639 million that I announced in July.

AEF support has three components: the distributable amount of non-domestic rates, the total of relevant specific and supplementary grants, and revenue support grant.

As I announced to the House on 6 November, I intend to specify that the distributable amount from the non-domestic rating account be £536 million on the basis that the Welsh national non-domestic rating multiplier for 1992–93 will be 42.5.

I propose that relevant specific and supplementary grants towards local authority revenue expenditure should total £195.3 million.

I further propose that the total of revenue support grant should be £1,617.1 million of which £1,616.0 million should be paid to Welsh county and district councils and £1.1 million to certain specified bodies.

My officials are today writing to Welsh local authorities setting out my proposals for the component amounts of AEF and inviting their views. I am placing a copy of that consultation letter, which details the relevant specific and supplementary grants and the amounts to be paid to specified bodies, in the Library of the House.

I will also provide an additional £5.985 million, outside AEF, for the payment of a special grant in 1992–93 to meet the estimated revenue cost to Welsh district authorities of council tax implementation. The special grant arrangements will be the subject of a separate consultation letter to be issued shortly.

Early in December I will be notifying Welsh local authorities of my proposals for the distribution and population reports setting out the basis on which I propose to distribute revenue support grant among county and district councils, and the rules for calculating the relevant population of the areas of county and district councils for the purpose of the distribution of non-domestic rate income. I shall lay these reports before the House in due course.