asked the Secretary of State for the Environment (1) what options he has considered in order to phase out the proposed London rate equalisation scheme after 1986–87;(2) if he will ensure that the proposed extended London rate equalisation scheme will not be phased out in such a way that results in a greater rate burden being placed upon London's inner city partnership areas.
My right hon. Friend has considered no proposal to phase out the London-wide rate equalisation scheme (LRES) after 1986–87. The London Boroughs Association has suggested that the overall level of the extended scheme should be reduced systematically over a run of years after 1986–87, to reflect potential savings compared to the present level of expenditure by the GLC. My right hon. Friend has accepted in principle that this might be appropriate, but any decisions about the LRES pool in future would be subject to the outcome of the statutory consultations on the scheme for each financial year.