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Rate Support Grant

Volume 886: debated on Wednesday 12 February 1975

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asked the Secretary of State for the Environment how the sums of money allocated within the rate support grant for 1975–76 to individual authorities in Cheshire and Greater Manchester compare with the corresponding figures for 1974–75.

Information in the form requested is not readily available and could be obtained only at disproportionate cost. But during the last five years claim settlements on trunk road contracts reached in accordance with the specific terms of the contract or under the general law have totalled some £22 million.

asked the Secretary of State for the Environment how many major road contracts are on a fixed-price basis; how many companies have requested that their contracts be placed on a variable price basis; and what is the estimate of the increase in contractor's costs due to inflation since the signing of fixed-price contracts.

There are 34 uncompleted major trunk road contracts on a firm-price basis. The Federation of Civil Engineering Contractors has requested on behalf of all its members engaged in trunk road construction that firm-price contracts should be renegotiated on a price adjustment formula basis. The effect of inflation varies with the date on which a contract was let and the work involved. The construction indices used for the price adjustment formula show an increase overall of about 27 per cent. during the calendar year 1974.