§ Ms LawrenceTo ask the Secretary of State for Wales if he will make a statement on local government revenue spending and grant support in 1999–2000. [69460]
§ Mr. MichaelI met the Welsh Local Government Association on 15 December and Welsh police authorities on 4 January to discuss the proposed settlement that I announced in December. I have given very careful consideration to their comments on it and to the many comments that I have received from hon. Members and others.
I have decided that, net of specific grants, total standard spending (TSS) for 1999–2000 will be £2,986.6 million and net aggregate external finance will be £2,570.2 million. These final figures represent increases on 1998–99 of 5.1 per cent. and 4.8 per cent. respectively.
Both figures are £0.2 million higher than the provisional amounts I announced on 9 December, because of a small increase in funding to match grants for education, support and training. The extra amount within net TSS for education is also increased, to £70.2 million.
In response to concerns expressed to me during the consultation period, I have decided to alter the formula for calculating the capital charges element of standard spending assessments (SSAs). The effect of the change is to increase SSAs for police authorities by £1.8 million. Details of final SSAs for councils and police authorities are shown in the table.
It also takes account of other minor changes between provisional and final SSAs caused by data changes.
The House will have the opportunity to debate my decisions when it considers the Local Government Finance Report (Wales) 1999–2000 on 11 February.
611WThe breakdown of net TSS is:
£ million SSAs for county and county borough councils 2,804.7 SSAs for police authorities 180.1 Payments to bodies specified under section 76 of the Local Government Finance Act 1988 1.8 Total standard spending net of specific grants 2,986.6 Net aggregate external finance for 1999–2000 will consist of revenue support grant (RSG) of £1,892.0 million, council tax reduction scheme grant (damping grant) of £22.2 million and redistributed non-domestic rates of £656.0 million.
The details of the council tax damping scheme remain as I announced in December. The total amount of damping grant and the damping grant entitlement for each council have changed because of changes between provisional and final SSAs. The entitlement for each council is shown in the table at the end of the answer.
The settlement represents a significant real-terms increase for local government, and delivers the Government's priorities for education, social services and other key local services. Within the increase in net TSS, there is £70.2 million extra for education which will cover the cost of the review body's recent recommendations on teachers' pay.
I am not announcing capping criteria in advance for 1999–2000. I expect councils and police authorities to budget prudently. Capping powers remain available to me if any authority makes an excessive increase in its council tax.
Finally, the arrangements for council tax benefit subsidy limitation remain as set out in my answer of 14 December 1995, Official Report, column 390. Guideline figures
are 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.The guideline figure for each council is shown in the table.
612W
£ million Council/police authority SSA for 1999—2000 Entitlement to damping grant1 Guideline figure2 Isle of Anglesey 68.0 — 70.2 Gwynedd 118.9 — 126.8 Conwy 104.9 — 104.9 Denbighshire 91.6 — 97.1 Flintshire 135.0 — 140.7 Wrexham 112.6 — 118.4 Powys 131.2 — 134.1 Ceredigion 70.3 0.1 75.8 Pembrokeshire 114.6 — 116.9 Carmarthenshire 169.0 — 177.9 Swansea 214.3 0.2 226.7 Neath Port Talbot 133.6 3.1 148.4 Bridgend 123.5 0.0 131.0 The Vale of Glamorgan 110.0 — 112.0
£ million Council/police authority SSA for 1999–2000 Entitlement to damping grant1 Guideline figure2 Rhondda, Cynon, Taff 230.3 9.1 254.0 Merthyr Tydfil 59.0 3.8 67.1 Caerphilly 164.0 0.1 172.8 Blaenau Gwent 70.3 5.8 79.4 Torfaen 89.9 — 92.1 Monmouthshire 75.4 — 75.4 Newport 130.6 — 134.2 Cardiff 287.8 — 299.0 All county and county borough councils: total 2,804.7 22.2 Not applicable Dyfed-Powys 25.8 — — Gwent 34.8 — — North Wales 37.6 — — South Wales 81.9 — — All police authorities: total 180.1 Not applicable Not applicable 1Damping grant is paid to councils only 2Guideline figures have been set for councils only for 1999–2000. The National Assembly will be able to extend the arrangements for council tax benefit subsidy limitation to police authorities for 2000–01. In future this will be the responsibility of the National Assembly.