§ Mr. RuaneTo ask the Secretary of State for Wales if he will make a statement about discretionary rate relief granted by local authorities to their own schools. [55190]
§ Mr. Ron DaviesMy Department has advised local authorities that rate relief cannot be granted to Local Education Authority (County) schools under section 47 of 591W the Local Government Finance Act 1988. In this respect, local authority schools are treated in the same manner as other types of local authority property. The Government's funding of local authority expenditure has always taken account of the fact that full rates are payable on local authority property.
Like all other rate income, the rates paid by local authorities are pooled and redistributed. Those authorities who do not pay their full rates bills do so to the disadvantage of others. My Department intends to ensure that the outstanding rates are paid into the national pool for redistribution to all authorities.