HC Deb 11 February 1999 vol 325 cc397-8W
Mr. Llwyd

To ask the Secretary of State for Wales (1) what agreement was reached with the Welsh Local Government Association via the Consultative Council on the standard spending assessment formula for 1998–99 and 1999–2000; [70606]

(2) when he agreed with the Welsh Local Government Association not to update the standard spending assessment formula for 1999–2000; what consultations were entered into prior to such agreement; and if he will make a statement. [70605]

Mr. Michael

At a meeting of the Welsh Consultative Council on Local Government Finance on 27 October 1997 the Association agreed the SSA formula for 1998–99 and agreed that it would be rolled forward for 1999–2000 other than to reflect data changes. Accordingly the formula for 1999–2000, which was agreed at the Consultative Council on 13 November 1998, has remained unchanged other than to take account of data changes. I have commissioned an independent review of the formula in conjunction with the WLGA and following the transfer of powers, these issues will be a matter for the National Assembly.

Mr. Llwyd

To ask the Secretary of State for Wales what recent consultations there have been with the Welsh Local Government Association with regard to standard spending assessment. [70608]

Mr. Michael

There is regular contract between my officials and the WLGA on issues regarding local government finance in Wales. I met the Association's representatives in the Welsh Consultative Council on Local Government Finance on 15 December 1998, as part of the statutory consultation on the provisional local government revenue settlement.

Following the transfer of powers, this issue will be a matter for the National Assembly

Mr. Llwyd

To ask the Secretary of State for Wales what changes are proposed in the allocation of the capital charges element of standard spending assessment between local government and the police authorities in Wales for 1999–2000. [70609]

Mr. Michael

I have revised the methodology for calculating capital charges following representations made by Police Authorities in Wales when it became clear that the application of a common formula had resulted in a disproportionate and unintended impact on the Welsh Office share of police finances. As a result of the changesthe formula now ignores interest receipts in the capital charges model for both police authorities and local authorities in Wales; for the police, the allowance for Capital Expenditure from the Revenue Account (CERA) has been removed. CERA was removed for councils in 1998–99, and this change means that both tiers are being treated equally; for the police, the assumption about repayment of loan debt principle has been reduced from 7 per cent. to 4 per cent. for 1999–2000. Again this means that both tiers are being treated equally.