To ask the Chancellor of the Exchequer by how much local authorities overspent in 1989–90 and 1988–89; what were the effects on inflation; and if he will make a statement.

Local authorities' total net current expenditure exceeded their grant-related expenditure (GRE) by 7 per cent. in both 1988–89 and 1989–90. Increases in total domestic rates added around 0·36 per cent. and 0·4 per cent. to the level of the RPI in 1988–89 and 1989–90 respectively.