Skip to main content

Rate Support Grant

Volume 975: debated on Monday 10 December 1979

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Secretary of State for the Environment what percentage of the needs element of the rate support grant 1978–79 and the rate support increase order for the same year is based on the amount actually spent by local authorities.

None of the needs element of the rate support grant is distributed on the basis of individual authorities' actual expenditure with the exception of the re-distribution of grant to districts in non-metropolitan counties. However, the formula used to distribute the grant is derived from a statistical analysis of total local authority expenditure, and I am concerned that it may be possible for groups of high spending authorities to influence the distribution in their favour. 1980–81 will be the last year in which the present RSG distribution arrangements apply; from 1981–82, the needs element will be subsumed with the resources element in the new block grant.