HC Deb 14 June 1994 vol 244 cc336-7W
Mr. Rowe

To ask the Secretary of State for the Environment whether local authorities and council tax payers outside the reorganised areas will be protected from the increased costs of local government reorganisation.

Mr. Curry

In most cases reorganisation should, over time, lead to reduced costs. There would need to be significant non-financial benefits to justify a reorganization that did not lead to net savings. We would expect savings and, exceptionally, any net costs, to be confined to the areas being reorganised.

Mr. Pickthall

To ask the Secretary of State for the Environment how it is proposed that the transitional costs of local government reform in England will be met in 1995–96 and in subsequent years.

Mr. Curry

Authorities subject to reorganisation in 1995 will be able to borrow to meet transitional costs incurred this year. Similar arrangements will apply for 1995–96 and later years, but taking account of authorities' ability to meet the costs from savings and receipts generated by reorganisation. We shall be consulting local government on the arrangements later in the summer.