§ Mr. RichardsTo ask the Secretary of State for Wales what are his proposals for local government revenue spending in 1994–95.
§ Mr. RedwoodI propose to set total standard spending in Wales for 1994–95 at £2,704.8 million. This figure includes the £86 million for care in the community announced by my hon. Friend the Under-Secretary of State on 2 November. It represents an increase of 4.2 per cent. including community care resources or a 2.3 per cent. excluding care in the community.
I propose to set central government support for TSS through aggregate external finance at £2,419.2 million. The additional £86 million in community care resources the increase is 3£3 per cent., or 1.3 per cent. excluding care in the community.
Within AEF I propose to make available £1,740.1 million in revenue support grant, £464.0 million in distributable non-domestic rates and £215.1 million in specific and supplementary grants.
The non-domestic rate poundage for 1994–95 will increase by 1.8 per cent. to 44.8 pence in the pound in line with the increase in the retail prices index for the 12 months to September 1993.
My proposals constitute a realistic package. They will enable local authorities to maintain services, given the sharp fall in inflation. Local authorities will need to assess carefully their expenditure priorities and look to achieve the best value for money in providing services. I am sure that Welsh local authorities will exercise prudence in making their budgetary decisions for the coming financial year.
My Department has today written to the local authority associations to consult them on my proposals for revenue support grant in 1994–95. I will announce provisional standard spending assessments for individual Welsh authorities and my provisional capping criteria in mid-December; and my final settlement proposals early in the new year.