HC Deb 26 July 1993 vol 229 cc699-700W
Mr. Clelland

To ask the Secretary of State for the Environment what plans he has to ensure that the area grant adjustment methodology within standard spending assessments reflects accurately the actual level of wage costs to all local authorities.

Mr. Baldry

The general aim of SSAs is not to reflect actual expenditure but to measure each authority's relative need to spend in order to provide a standard level of service. As far as the area cost adjustment is concerned, we are examining the methodology as part of our review of SSAs for 1994–95. We will be announcing our proposals later in the year.

Mr. Straw

To ask the Secretary of State for the Environment when the outcome of his review of standard spending assessments will be published; in what form; and how long a period there will be for consultation before final decisions by Ministers are made.

Mr. Gummer

I shall discuss the report on the review of standard spending assessments, to be prepared by the SSA sub-group to the settlement working group, with representatives of the local authority associations at the October meeting of the Consultative Council on Local Government Finance.

We shall announce our proposals for the revenue support grant settlement for 1994–95, including SSAs, in the late autumn, and then consult in the usual way.

Mr. Straw

To ask the Secretary of State for the Environment if he will place in the Library the representations which he has received in respect of his review of standard spending assessments.

Mr. Gummer

I shall arrange for copies of the representations received so far from local authorities on the review of standard spending assessments to be placed in the Library.

Mr. Nigel Jones

To ask the Secretary of State for the Environment what has been the annual change in the total standard spending assessments for all English local authorities from 1990–91 to 1993–94; and what were the annual increases in the element for the area cost adjustment over the same period.

Mr. Baldry

The total of standard spending assessments for all local authorities in England for 1993–94 was £36,622 million, of which £1,332 million—3.6 per cent. of the total—was allocated on the basis of the area cost adjustment. The annual percentage changes since 1990–91 have been as follows:

Percentage changes
Year Total SSA Amount allocated on area cost adjustment
1990–91 to 1991–92 19.4 37.7
1991–92 to 1992–93 6.8 14.1
1992–93 to 1993–94 2.9 7.4

Note: For the purposes of comparison with 1993–94, the 1992–93 figures have been adjusted to allow for the transfer of certain local authority responsibilities, most notably for further education.