Mr. Gareth ThomasTo ask the Secretary of State for Wales if he will make a statement on local government revenue spending and grant support for 1998–99. [27389]
§ Mr. Ron DaviesI have given very careful consideration to the representations I have received. I chaired a meeting of the Welsh Consultative Council on Local Government Finance on 15 December 1997 and met a delegation from Welsh local government last week at which settlement matters were discussed.
I have decided to confirm total standard spending (TSS) at £3,090.5 million and aggregate external finance (AEF) at £2,701.9 million for 1998–99. The increases on 1997–98 in TSS and AEF are 4.0 per cent. and 3.2 per cent. respectively. TSS includes £352.9 million to fund police authorities; £50.3 million extra for schools; an additional £4.4 million for 4 year old education; and £190.2 million for care in the community. I acknowledge that the settlement will mean some authorities will have to make tough decisions, I too have had to make hard decisions on spending priorities within the Welsh block. Under the provisional capping limits I announced in December, Welsh local authorities will be able to increase their year-on-year revenue spending, on average, by 4.8 per cent. The increase for police authorities is 3.8 per cent. In the circumstances I believe it to be a fair deal for local government in Wales.
AEF will comprise £1,799.9 million in revenue support grant; £612.0 million in distributable non-domestic rates; £258.8 million in specific grants (including police grant); and £31.2 million to help local authorities limit council tax increases. Actual council tax levels will depend on the budgetary decisions of individual local and police authorities.
I am laying the Local Government Finance Report (Wales) 1998–99 before the House today together with the Limitation of Council Tax (Relevant Notional Amounts) Report (Wales) 1998–99 and the Special Grant Report (No 2) (Wales) 1998.
I am placing final settlement details for individual local authorities and police authorities in the Library of the House. My decisions are subject to the approval of the House of Commons.