§ Mrs. Anne CampbellTo ask the Secretary of State for the Environment when he expects to report on the40W progress of the review of the calculation of the area cost adjustment in the standard spending assessment. [19]
§ Sir Paul BeresfordThe local authority associations are co-operating with us in carrying out the review. We and they are identifying the team which will conduct the review. It is our intention to seek a report of the review by June 1996. This would allow discussion and consideration of any possible changes to our current methodology in time for the 1997–98 settlement.
§ Mr. Alfred MorrisTo ask the Secretary of State for the Environment what plans he has to change the area cost adjustment element of standard spending assessments; and if he will make a statement. [106]
§ Mr. CurryWe have no plans to change the present methodology by which we calculate the area cost adjustment until we have a robust system to put in its place.
On 16 October, I proposed to the local authority associations an independent review of the adjustment. The aim is to establish a method of carrying out the adjustment which commands the widest degree of acceptance among authorities in all parts of the country, has a sound conceptual basis and is practical to apply.
The review will be steered by a leading academic together with someone knowledgeable about local government finance, nominated by the local authority associations, and someone familiar with central Government processes, nominated by the Secretary of State. I hope we shall soon be able to announce who those people will be.
Research will be commissioned to assist the review in its work. We shall seek a report from the review in June 1996.