Rate Support Grant

Part of the debate – in the House of Commons am 12:00 am ar 20 Rhagfyr 1973.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Mr Graham Page Mr Graham Page , Crosby 12:00, 20 Rhagfyr 1973

No, the hon. Gentleman is not quite right. The orders deal with the period up to March 1974. The No. 2 order deals with the increase in costs for the period up to the end of March 1974. Therefore, we are not dealing with 1974–75. It may be that when we come to November or December 1974 we shall be obliged to look again at the settlement for 1973–74—namely, that which we are discussing now. Perhaps a further increase order may then be necessary. Alternatively, we may be able to take a considerable amount of the increase which we would be making next November into the main settlement of this year.

I think that the hon. Gentleman has in mind whether we can take more into account as we are starting off with new local authorities with a new main support grant order, despite the fact that we have been delayed a little. I can assure the hon. Gentleman that we have that well in mind. I cannot make any promises. It is a matter which must be considered and discussed with the local authority associations.

The orders before the House take account of increases in prices, costs and remuneration since last year. That is as far as they go. Each year the main grant settlement is based on expenditure reflecting the levels of prices, costs and remuneration which are current when the main order is made. To prevent the value of the grants being eroded by subsequent unforeseen rises in the level of prices, costs and remuneration, my right hon. and learned Friend is empowered by the Act to increase the grant if it appears to him that the effect of the rises in prices, costs and remuneration on relevant expenditure by local authorities is substantial.