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Rate Support Grant

Volume 114: debated on Wednesday 8 April 1987

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asked the Secretary of State for the Environment, if he will now answer the question to which a holding reply was given on 21 January at column 590 concerning rate support grant.

[pursuant to his reply, 30 March 1987, c. 421]: The figures for 1987–88 requested at items (a) and (b) of the question have been placed in the Library. They include an adjustment for the costs of the teachers' pay settlement. The figures for 1978–79 have not been provided as grant was not paid on a comparable basis. The figures provided at (c) and (d) refer to 1981–82, the earliest year for which grant was paid on a comparable basis to 1987–88. The figures at (e) represent the percentage change in grant per head from 1981–82 to 1987–88 expressed as a percentage of the 1981–82 figures.


Rate Support Grant comprises Block Grant and Domestic Rate Relief Grant.

The figures for 1981–82 are final entitlements expressed in 1986 prices using the GDP deflator. In 1981–82 Metropolitan police and GLC entitlements were paid to the rating authorities in their areas.

The figures for 1987–88 are based on estimates of authorities' entitlements to grant following the first supplementary report which is expected to be laid before the House after Easter. The estimates, which are provisional, are on the basis of the expenditure figures provided by local authorities on form BG14, adjusted where necessary to include estimates of the cost of the teachers' pay settlement. Figures for London boroughs include abolition-related LRES receipts.

In addition to the adjustments requested, the 1987–88 figures for the London boroughs and the districts of Broxbourne, Elmbridge, Epping Forest, Epsom and Ewell, Hertsmere, Reigate and Banstead, Spelthorne and Welwyn Hatfield include a proportion of the Receiver for the Metropolitan police district's rate support grant. For Broxbourne, Elmbridge, Epping Forest, Hertsmere, Reigate and Banstead and Welwyn Hatfield this grant has been distributed on the basis of estimates of the population of the parts of each council's area which fall within the Metropolitan police area.