asked the Secretary of State for Scotland whether he will make a statement about the level of local authority expenditure provision for 1986–87.

I propose to increase the level of provision for local authority expenditure in Scotland in 1986–87 by £59 million above the figure published in the White Paper on the Government's Expenditure Plans (Cmnd. 9428). The total provision for relevant current expenditure for 1986–87 will now be £2,989 million. In making this addition I have taken into account the representations made to me by the Convention of Scottish Local Authorities and I believe that the enhanced level of provision is a realistic target for Scottish local authorities.The system of guidelines and grant penalties will continue to apply in order to maintain pressure to restrain expenditure. Since the additional provision I have made represents a significant step towards bridging the gap between my view and the view of the local authorities as to what should be spent, I trust that all authorities will now plan to remain within guidelines in 1986–87, thus avoiding the severe penalties which I will otherwise have to impose. The grant total and the guidelines will be announced in due course.