HC Deb 27 January 1994 vol 236 cc326-7W
Mr. Richards

To ask the Secretary of State for Wales when he will announce his decision on the 1994–95 local government revenue settlement.

Mr. Redwood

I have given careful consideration to the representations I have received on the provisional settlement proposals I announced on 30 November. My hon. Friend the Parliamentary Under-Secretary of State has met the Assembly of Welsh Counties, and I chaired a meeting of the Welsh Consultative Council on Local Government Finance, at which settlement issues were discussed.

Having taken account of all the representations, I remain of the view that my proposals provide local authorities with an adequate level of funding for 1994–95, given the Government's view that local government should continue to pursue efficiency savings and meet the cost of pay increases from improved performance. I have therefore decided to set total standard spending—TSS—at £2,704.8 million and aggregate external finance—AEF—at £2,419.2 million for 1994–95. The settlement will increase the level of resources available to local government by over £100 million compared with 1993–94.

AEF will comprise £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. My decisions are subject to the approval of the House.

The TSS I have announced for 1994–95 represents an increase of 4.2 per cent. on 1993–94, including £86.0 million for care in the community. My plans mean that 89 per cent. of all local authority revenue expenditure in Wales would be met by central Government and should ensure a reasonable level of council tax for local taxpayers in Wales.

I trust that local authorities will budget prudently and play their part in restraining public expenditure.

I propose to lay the Local Government Finance Report (Wales) 1994–95 before the House, for its approval, early next week. At the same time, I will be laying for the House's approval, the Local Government Finance (Amendment) Report (Wales) 1993–94. The amending report rectifies a deficiency in the description of the basis for distributing the distributable amount from the non-domestic rating account contained in the Local Government Finance Report (Wales) 1993–94—HC 412 of 1 February 1993. The amendment does not affect payments under the original report which have been made in the intended manner.