§ Mr. RuaneTo ask the Secretary of State for Wales what plans he has for individual local authority spending in 1999–2000, for council tax damping and arrangements for council tax benefit subsidy. [64153]
§ Mr. MichaelI am consulting county and country borough councils on their provisional Standard Spending Assessments (SSAs) for 1999–2000 as set out in the following table.
The provisional SSAs have been calculated using the formula agreed with the Welsh Local Government Association. They are consistent with my proposal for total standard spending, net of specific grants, of £2,986 million which I announced in my answer to my hon. Friend the Member for Preseli Pembrokeshire (Ms Lawrence) on 9 December 1998, Official Report, columns 229–30. The breakdown of total standard spending, net of specific grants, is:
£ million Provisional SSAs for county and county borough councils 2,806.3 Provisional SSAs for police authorities1 178.3 Proposed payments to bodies specified under section 76 of the Local Government Finance Act 1988 1.8 Total standard spending net of specific grants 2,986.4 1Announced in my answer to my hon. Friend the Member for Preseli Pembrokeshire (Ms Lawrence) on 2 December 1998, Official Report, column 212. The details of the council tax damping scheme which I announced on 9 December 1998, Official Report, columns 229–30, are as follows:
I proposed to provide council tax reduction grant of £22.5 million to 8 councils;the grant will keep council tax increases, excluding community council precepts and discretionary non-domestic rate relief, to £70 at Band D in those councils' areas, or the parts of them that qualify for damping, as long as councils do not increase their budgets above the guideline figures that I am announcing for limiting council tax benefit subsidy payments.The provisional damping grant entitlement for each council is shown in the following table.
I propose that the amount of revenue support grant (RSG) for 1999–2000 should be £1,891.5 million.
The arrangements for council tax benefit subsidy are as follows:
I propose to set guideline figures consistent with an average increase of 7.2 per cent. in council tax which, in broad terms, equates to a budget increase of 5.9 per cent. over this year for each council, subject to allowing each council to spend the increase in its SSA in full;on council tax above the guideline figure, subsidy would be withdrawn at the rate of 50 per cent.I have made one minor change to the figures that I gave my hon. Friend the Member for Preseli Pembrokeshire (Ms Lawrence) in my answer on 9 December 1998, Official Report, columns 229–30. I now propose that the amount of specific grants for 1999–2000 should be £258 million.
391WConsequently, my proposals for total standard spending and aggregate external finance are £3,244 million and £2,828 million respectively.
My Department has written today to the Welsh Local Government Association and all local authorities in Wales to initiate a consultation on my proposals. Copies of the consultation letter will be placed in the Library of the House.
£ million Council Provisional SSA for 1999–2000 Provisional entitlement to damping grant Provisional guideline figure Isle of Anglesey 68.0 — 70.2 Gwynedd 118.9 — 126.8 Conwy 104.7 — 104.7 Denbighshire 91.8 — 97.1 Flintshire 134.9 — 140.7 Wrexham 112.7 — 118.4 Powys 131.4 — 134.1 Ceredigion 70.2 0.2 75.8 Pembrokeshire 114.5 — 116.9 Carmarthenshire 169.1 — 177.9 Swansea 214.2 0.6 226.7 Neath Port Talbot 133.5 3.2 148.4 Bridgend 123.6 0.0 131.0 The Vale of Glamorgan 110.1 — 112.0 Rhondda, Cynon, Taff 230.6 8.9 254.1 Merthyr Tydfil 59.0 3.9 67.1 Caerphilly 164.2 0.1 172.8 Blaenau Gwent 70.4 5.6 79.4 Torfaen 89.8 — 92.1 Monmouthshire 75.5 — 75.4 Newport 130.8 — 134.2 Cardiff 288.1 — 299.3 All county and county borough councils: total 2,806.3 22.5 not applicable