§ Mr. CohenTo ask the Secretary of State for the Environment what external legal advice he has taken in respect of the Audit Commission's use of the powers set out in sections 28 and 29 of the Local Government Finance Act 1982; and if he will make a statement. [7644]
§ Sir Paul BeresfordIt is for the Audit Commission to satisfy itself that it is acting fully within its powers under sections 28 and 29 of the Local Government Finance Act 1982.
§ Mr. BlunkettTo ask the Secretary of State for the Environment how much money is to be yielded by national domestic rates in 1996–97; what percentage of that amount is allocated to local government and how much of that amount was held back by the Treasury in 1996–97; and what estimate he has made of the figures in each case for 1997–98. [7476]
§ Mr. CurryI refer the hon. Member to the answer I gave my hon. Friend the Member for Croydon, North-East (Mr. Congdon) on 27 November,Official Report, column 242–44.
Because of the pooling arrangements, it is not possible to say what percentage of the non-domestic rates yield for any one year is allocated to local government in that year. Under paragraph 8 of schedule 8 to the Local Government 42W Finance Act 1998, the Secretary of State for the Environment is required to distribute to local authorities the total amount which he estimates will be paid into the pool, after adjusting for any deficit or surplus brought forward from the previous year.
By the end of 1996–97, the amount distributed from the pool since 1990–91 to local authorities will total £81.476 billion, while the amounts paid into the pool are estimated to total £80.631 billion over the same period: the deficit on the pool at the end of 1996–97 is, therefore, estimated to be £0.845 billion. Taking account of estimated payments into the pool of £12.873 billion in 1997–98, the amount paid into the pool between 1990–91 and 1997–98 is estimated to total £93.503 billion, and will equal the amount distributed to local authorities over the same period.