§ Mr. Austin MitchellTo ask the Secretary of State for the Environment what proposals he has for the reform of the standard spending assessments in the light of the Audit Commission's report.
Mr. SquireStandard spending assessments (SSAs) are based on extensive analysis, research and continuing discussions with local authority representatives. The Government are not proposing any major changes to SSAs although data from the 1991 census will be incorporated as soon as possible after they become available.
The Audit Commission is in the early stages of a study of standard spending assessments, but has published no recent report on the subject. We shall, of course, consider any recommendations which the commission may eventually make.
§ Mr. Austin MitchellTo ask the Secretary of State for the Environment (1) why the capital financing standard spending assessment for Westminster for 1991–92 was set at a level higher than that required by the council; what effect this had on the level of poll tax in Westminster; and if he will give the comparable figures for Great Grimsby and Humberside;
(2) what considerations of policy led to the decision not to use the October figures of each charging authority's debt repayments as included in their budgets in calculating their standard spending assessments; and if he will give the basis of the assumptions which are used in fact.
Mr. SquireThe capital financial element of an authority's SSA is based on notional, rather than actual, outstanding debt. This is to ensure that all authorities are treated equally and that past and present policies with regard to financing capital expenditure do not affect SSAs. The use of actual debt would: penalise those authorities who have in the past chosen to use receipts to reduce debt; divert grant towards expenditure on trading services (which are specifically excluded from SSAs as they are assumed to generate income); and provide grant for those debt charges which are already covered by specific grants.
The method of calculating the capital financing SSA element for all authorities is set out in the Revenue Support Grant Distribution Report (England). The underlying basis of the calculation is set out in annex VII of the SSA Handbook on Background and Underlying Methodology—copies of both documents are in the Library.
The following table sets out the information requested: 12W
1991–92 capital financing SSA element Equivalent net revenue expenditure Effect on community charge if net revenue expenditure were equal to SSA £ million £ million £ per head Great Grimsby 0.627 1.650 -16 Humberside 44.489 36.293 +13 Westminster 20.610 7.252 +85