§ 21. Mr. RooneyTo ask the Secretary of State for the Environment when he expects to set final capping limits for local authority spending.
§ Mr. CurryWe cannot take decisions on capping principles or on designation of individual authorities until after authorities have set their budgets and notified my Department by the end of this week. I expect to designate authorities under the capping procedures at the end of this month or early next.
§ Sir Anthony GrantTo ask the Secretary of State for the Environment (1) what amount was gained by(a) Bedfordshire and (b) Cambridgeshire through area cost adjustment over the last 10 years;
(2) what consideration he has given to reform of the area cost adjustment system for local government finance; and if he will make a statement;
(3) if he will list the detailed criteria used in determining the area cost adjustment formula and the counties receiving it; and if he will make a statement;
(4) what was the financial effect of the area cost adjustment as between Cambridgeshire, Bedfordshire, Hertfordshire and Oxfordshire in the current financial year.
§ Mr. Robert B. JonesThe methodology that is used to calculate the area cost adjustment is set out in the departmental publication "Standard Spending Assessments: Guide to Methodology 1994–95 edition". A copy of this publication was placed in the Library. The main change introduced for 1995–96 is the replacement of judgmental factors in the calculation by detailed data from the new earnings survey.
591WWe are currently considering with the local authority associations what programme of work should he undertaken on standard spending assessment methodology in 1995. We have indicated that we wish to consider the case for a change in the boundaries of zones used in the area cost adjustment and have commissioned research as a part of this work.
All London authorities, Isles of Scilly and Isle of Wight councils and authorities within the following counties currently receive area cost adjustments: Bedfordshire, Berkshire, Buckinghamshire, East Sussex, Essex, Hampshire, Hertfordshire, Kent, Oxfordshire, Surrey and West Sussex.
Cambridgeshire does not receive area cost adjustment. The other figures requested are:
a. In 1994–95 the county councils for Bedfordshire. Hertfordshire and Oxfordshire received the following contribution to their total standard spending assessment from area cost adjustment:
- Bedfordshire: £;22.830 million
- Hertfordshire: £59,778 million
- Oxfordshire: £21.320 million
b. Since 1990–91, the first year of standard spending assessments, Bedfordshire county council has received the following contribution to its total standard spending assessment from area cost adjustment:
- 1990–91: £9.777 million
- 1901–92: £13.302 million
- 1992–93: £16.505 million
- 1993–94: £20.263 million
- 1994–95: £22.830 million
- 1995–96: £17.456 million
§ Mr. Harry GreenwayTo ask the Secretary of State for the Environment what were the accumulated financial reserves(a) of the London Borough of Ealing and (b) all other local authorities on 1 April 1994 and at the latest estimate; and if he will make a statement.
§ Mr. Robert B. JonesI have placed the information in the Library of the House.
§ Mr. Nigel JonesTo ask the Secretary of State for the Environment if he will make a statement on the purpose of designating local authorities for capping.
§ Mr. Robert B. JonesThe twin purposes of capping are to ensure that all local authorities play their part in the restraint of public expenditure, and to protect council taxpayers from high council taxes.
§ Mrs. Jane KennedyTo ask the Secretary of State for the Environment when he expects to set final capping limits for local authorities.
§ Mr. CurryWe cannot take decisions on capping principles or on designation of individual authorities until after authorities have set their budgets. I expect to designate authorities under the capping procedures at the end of this month or early next.