To ask the Secretary of State for Scotland what action he proposes to take in the light of local authorities' budgets and rates for 1988–89; and if he will make a statement.
Local authorities in Scotland have budgeted to spend £136 million or 3·8 per cent. over guidelines in 1988–89 and have determined rates which will, on average, increase domestic rate bills by 5·2 per cent. I am pleased that the realistic provision and grant which I have made has resulted in many authorities setting their rates at a reasonable level, but I am disappointed that so many authorities have still ignored warnings about overspending.I am particularly concerned at the problems facing ratepayers in the areas of those authorities which are planning the most substantial expenditure excess. As a result, I have decided to initiate action in terms of section 5 of the Local Government (Scotland) Act 1966 in respect of Lothian regional council, on the grounds that its planned expenditure for 1988–89 is excessive and unreasonable. A letter has today been sent to Lothian region proposing a rate reduction of 5·6p, and inviting it to make representations about the proposed reduction.I am giving further consideration to whether the planned expenditure of any district council is excessive and unreasonable. I am also reflecting on appropriate grant penalties for overspending authorities in the light of views expressed to me last Friday by the Convention of Scottish Local Authorities. I will make a further announcement on these matters soon.