HC Deb 30 November 1993 vol 233 cc492-3W
Mr. Spearing

To ask the Secretary of State for the Environment if he will tabulate the capital financing element, the equivalent budgeted net revenue expenditure on capital financing, the differences between them, the relevant population, and the difference per head of that population for each local authority in England for each of the financial years 1992–93 and 1993–94, in a manner similar to those tables published in theOfficial Report, 19 February 1992, columns 193-200.

Mr. Baldry

The information requested has been placed in the Library.

Sir Anthony Grant

To ask the Secretary of State for the Environment what are his proposals for the appropriate level of aggregate local authority spending in 1994–95, and the level of central support for that spending.

Mr. Gummer

I propose that total standard spending—TSS—for 1994–95 should be £42.664 billion for England, £1.496 billion above this year's figure. This total includes the new transitional community care special grant of £736 million announced by my hon. Friend the Minister for Health on 29 October. After adjusting for changes in local authority functions and excluding community care, TSS in 1994–95 represents an increase of 2.3 per cent. over this year.

I propose that the level of aggregate external finance—AEF—distributed to local authorities in England in 1994–95 should be —34.3129 billion, £1.0385 billion higher than this year. This figure also includes the £736 million transitional community care special grant.

I also propose that the non-domestic rate poundage for 1994–95 in England should rise by 1.7 per cent. to 42.3p, reflecting the annual increase in the retail prices index to September. This will ensure that the benefit of the Government's success in tackling inflation will once again be passed on in full to businesses.

I propose to set the distributable amount of non-domestic rates at £10.685 billion. I propose that the total of revenue support grant should be £18,496,837,001. Specific and special grants within AEF will amount to £5,131,062,999.

I shall announce shortly my proposals for the distribution of Government grants, including the outcome of my review of standard spending assessments. At the same time, I shall announce my current capping intentions. I shall also set out my proposals for the second year of transitional assistance to those households which faced significant increases in their local tax bills following the introduction of the council tax, and for meeting the transitional costs of local government reorganisation.

It is essential that local and central Government continue to play their part in restraining expenditure. Our overriding priority is to reduce the public sector deficit. My proposals for total standard spending, aggregate external finance and the non-domestic rate poundage represent a balanced approach to the funding of local authority services in 1994–95. I look to local authorities to take the same responsible attitude in determining their spending priorities and setting their budgets in 1994–95.