§ Mr. JenkinTo ask the Secretary of State for Scotland if he will make an assessment of the additional amounts that local authorities in Scotland will have to pay into their pension funds as a result of the proposed changes to advance corporation tax; and from where these moneys will be provided. [7342]
§ Mr. Chisholm[holding answer 8 July 1997]: The funding of local authority pension funds is a matter for local authorities. Although the loss of tax credits will have some impact on the income of local authority pension funds, the extent to which these changes feed through to authorities' budgets will depend on the overall judgements made by the funds' actuaries as they undertake subsequent revaluations to the funds. In addition, pension funds should benefit from improved company performance as a result of the reduction in Corporation Tax and other measures in the Budget to encourage quality long term investment.