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Local Government Expenditure

Volume 205: debated on Friday 13 March 1992

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To ask the Secretary of State for Wales if he will publish a table analysing the data in appendix 1 of Cm 1916, showing separately for each line for the years 1986–87 to 1994–95, (a) expenditure within the Welsh block and (b) other expenditure.

The Welsh block comprises all Welsh Office programmes apart from agriculture, industry and nationalised industries. With the exception of local authority unhypothecated current grants and credit approvals, expenditure is identified on a programme basis in appendix 1 of Cm 1916. The unhypothecated current grants cannot be allocated to specific programmes. The breakdown of credit approvals between block and other programmes is as follows:

£ million
BlockOtherTotal
1986–872662268
1987–882834287
1988–892833286
1989–902974301
1990–912523255
1991–923064310
1992–933325337
1993–943024306
1994–952934297

To ask the Secretary of State for Wales if he will publish the latest figures available, stating whether they are final outturns, provisional outturns or budget figures, for 1988–89 to 1991–92 on the statistical basis of table 1.1 (summary of revenue expenditure and income), table 1.2 (summary of capital expenditure and income), table 1.3 (revenue accounts outturn summary), table 1.4 (capital accounts outturn summary) and table 2.3 (revenue account summary) of Welsh local government financial statistics.

The tables to which the hon. Gentleman refers are based on final outturn information received from local authorities. Outturn figures for 1988–89 and 1989–90 have already been published in Welsh Local Government Financial Statistics volume 14 1990 and volume 15 1991 for these years respectively. Outturn figures for later years are not yet available. Provisional or budget based figures are not available centrally at this level of detail for all accounts.

To ask the Secretary of State for Wales if he will publish a reconciliation between (a) the local authority expenditure and its financing figures contained in figures 1.03 and 1.04 and appendices 1 and 3 of Cm 1916 and (b) the figures announced in the latest revenue support grant and other settlements.

Within the aggregate external finance package of £2,352 million for 1992–93 the revenue support grant—RSG—element is £1,621 million, the distributable amount from the non-domestic rating—NDR—account is £536 million and the allocation for revenue specific grants is £195 million.The Welsh revenue support grant report 1992–93 (revised) (HC 247), approved by the House on 12 February, set out my decisions on the level of RSG and NDR for 1992–93. The RSG total includes the additional resources of £3.5 million that I am making available in recognition of the school teachers' review body recommendations. This additional sum was announced too late to be included in Cm 1916. Appendix 1 of Cm 1916 refers therefore to my original proposal for an RSG allocation of £1,617 million and provides details of the NDR distributable amount and other revenue grants to local authorities for 1992–93.The unhypothecated support to local authorities for 1992–93 of £2,230 million in figure 1.03 of Cm 1916 includes my original proposals for RSG and the distributable amount of NDR together with the other grants itemised in the table.

Wales summary cash plans: 1992–93 (Cm 1916) Unhypothecated support to local authorities
£ million
Revenue Support Grant1,617
Non-domestic rating: distributable amount: 1992–93536
Non-domestic rating collection costs4
Community Charge Grant27
Community Charge Reduction Scheme Grant40
Council Tax Preparation Cost Special Grant6
2,230

To ask the Secretary of State for Wales if he will publish tables, covering the years 1986–87 to 1994–95 and consistent with Cm 1916, analysing (a) the Welsh block by economic category within spending sector and (b) the Welsh programme by economic category within spending sector.

The information is set out in tables 1 and 2. The definition of economic categories referred to is as follows:

A10Pay and pension costs of staff employed in central government departments which are subject neither to central government trading body or trading fund treatment.
A20Pay and pension costs of Ministers, staff of the Northern Ireland civil and court services, staff of other public bodies (eg NHS, fringe bodies, local authorities), locally engaged staff overseas, and the armed forces.
B20Current expenditure on goods and services ("general administrative expenses") of central Government Departments, the armed forces, the Northern Ireland civil and court services including receipts from central government departments' general administrative expenses and VAT refunds of running costs expenditure.
B30Receipts covering general administrative expenses which come from outside the government sector
B40Current expenditure on goods and services (other than the general administrative expenditure of central government departments) including receipts for the provision of goods and services by one part of government to another where the corresponding payment is classified as B40.
B50Receipts from the provision of goods and services other than those rendered exclusively to another part of general government (ie covered by B20 and B40) or covering general administrative expenses (ie included under B30).
C10Subsidies to the private sector.
C20Subsidies to central government and local authority trading bodies.
C40Subsidies to other public corporations.
D10Current grants to the private sector.
E10Expenditure on the purchase of land an existing buildings.
E20Expenditure on the construction of new dwellings and improvements to existing dwellings.
E30Expenditure on other new construction.
E40Expenditure on the purchase of vehicles, plant, machinery and equipment.
G10Capital grants to the private sector—companies.
G20Capital grants to the private sector—persons and non-profit making bodies.
G30Capital grants to nationalised industries.
G40Capital grants to list I and II public corporations.
H10Net lending to the private sector—companies.
H20Net lending to the private sector—persons and non-profit-making bodies.
H30Long term net lending to nationalised industries and issue of public dividend capital (PDC).
H40Net lending to list I and II public corporations.
J10Long term market and overseas borrowing and financial leasing by nationalised industries.
J20Market and overseas borrowing and financial leasing by list I public corporations.
J30Net temporary borrowing by nationalised industries from the national loans fund, the market and overseas).
J40Deposits by nationalised industries (bank deposits and transactions in interest-bearing securities) plus all borrowing/lending transactions with other natiolalised industries and with public corporations.
M10Current grants to local authorities within AEF/AEG (excluding EC grants and those covered by M20).
M15Current grants to local authorities outside AEF/AEG (excluding EC grants and those covered by M20).
M30Current grants made by the European Communities to local authorities
M40Non-domestic rates.
N10Capital grants to local authorities (excluding EC grants and those covered by N20).
N40Credit approvals.

1. Welsh office block

£ million

1986–87 Outturn

1987–88 Outturn

1988–89 Outturn

1989–90 Outturn

1990–91 Outturn

1991–92 Forecast outturn

1992–93 Plans

1993–94 Plans

1994–95 Plans

1. Central Government's own expenditure1A10252729323642464950
A20526588662701785897933975999
B20101112141416181919
B30-1--2-2-2-3-2-3-3
B404635125716207037819229781,055
B50-34-37-42-48-53-23-24-25-26
C10111247999
C20121111182212144551
D10171719232634878182
E10232-26-0-0-1-1
E20400100000
E30133165178174217223249290301
E40261826393951613529
G10311614811111212
G2059616999153175171168171
G30000000000
H10-0-00-000000
H20-010131-19-48-38-22-22
Total1,2461,3971,5561,6861,9392,1752,4542,6102,727
2. Local authority elements of the planning totalM108899661,0351,0711,1661,5301,6722,3482,449
M15891213184234249211220
M4030833836841444352553600
N1030312930149140190196210
N40268287286301255310337306297
Total1,5031,6311,7291,8292,1972,7392,9843,0603,176
3. Nationalised IndustriesC30100000000
G30161000000
H301370441500000
J102-59-36-3400000
J305-7-6000000
J40-4653300000
Total171791500000
4. Other public corporationsC40023324333
E10-4-210000000
E20100000000
E30650000000
E40000000000
G4001015263129324246
H20-1-00000000
H40-210-2-10000
J20-311320000
Total-2-319293432354550
Grand Totals2,7643,0433,3123,5594,1704,9465,4735,7145,953

1 Excluding finance to public corporations.

2. Welsh office programme

£ million

1986–87 Outturn

1987–88 Outturn

1988–89 Outturn

1989–90 Outturn

1990–91 Outturn

1991–92 Forecast outturn

1992–93 Plans

1993–94 Plans

1994–95 Plans

1. Central Government's own expenditure1A10252729323642464950
A20526588662701785897933975999
B20101112141416181919
B30-1-2-2-2-2-3-2-3-3
B404635125726227057839249811,057
B50-34-37-42-48-53-23-24-25-26
C1083667776101143163175177
C20121111182212144551
D10171819232734878183
E10232-26-0-0-1-1
E20400100000

1986–87 Outturn

1987–88 Outturn

1988–89 Outturn

1989–90 Outturn

1990–91 Outturn

1991–92 Forecast outturn

1992–93 Plans

1993–94 Plans

1994–95 Plans

E30133165178174218226251292303
E40261826393951613529
G1011690101816187788587
G20787380110165187182179183
G30000000000
G40000000000
H10-0-00-000000
H20-010131-19-48-38-22-22
Total1,4611,5531,7381,8402,1042,4052,6932,8662,987
2. Local authority elements of the planning total
M108909681,0371,0731,1671,5321,6742,3502,451
M15891212183233248210219
M30000001000
M4030833836841444352553600
N1032333033152144195200215
N40268287286301256310337306297
Total1,5061,6351,7321,8322,2012,7462,9903,0663,182
3. Nationalised Industries C30100000000
G30161000000
H301370441500000
J102-59-36-3400000
J305-7-6000000
J40-4653300000
Total171791500000
4. Other public corporations
C4069117912131313
E10-4-210000000
E20100000000
E30650000000
E40000000000
G10000-000000
G40366380103118121110108114
H20-1-00000000
H40-052-4-1-1222
J20-123453222
Total436397111132135127125132
Grand Totals3,0283.2683,5753,7974,4375,2865,8096,0566,300

1 Excluding finance to public corporations.

To ask the Secretary of State for Wales if he will publish tables analysing for the years 1986–87 to 1994–95 the data in figure 1.03 of Cm 1916, analysing the component parts of (a) the Welsh block and (b) other

Public expenditure sub-programmes Welsh Block
£ million
1986–871987–881988–891989–901990–911991–921992–931993–941994–95
Roads and transport
160401 Motorways and trunk roads new construction/improvement97116137118163146174
160402 Freight facilities and other grants111
160403 Motorways and trunk roads maintenance15141515192021
160404 Other central government11
160405 Principal roads grant1
160405 Industrial Development Act grant1112
160408 Loss of redundancy rebate
160409 Transport grant20212020273637
161301 Credit approvals24246965546262
161213 New towns—capital expenditure on roads33
Total roads and transport159179242220264267298329342
Housing
160501 Subsidies—central Government to local authorities12101016

expenditure, by (i) public expenditure (sub)-programme and (ii) the functional classification used in the identifiable expenditure figures (appendix E of Cm 1920).

1986–87

1987–88

1988–89

1989–90

1990–91

1991–92

1992–93

1993–94

1994–95

160502 Subsidies—other1111368
160504 Other current expenditure2222445
160506 Renewal areas, OIA's and HAM's113
160507 Group repair and enveloping191413
160511 Repurchase of defective dwellings21
160512 Slum clearance111
160513 Improvement for sale
160514 Improvement grants7554104
160515 Reinstatement grants for defective dwellings433
160516 Homes insulation grant2211
160522 Miscellaneous central Government capital expenditure
160523 Housing for Wales—grant-in-aid1112233
160524 Housing for Wales capital grants to housing association48495686130158155
160525 Housing for Wales lending to housing associations315174-14-41-32
160526 Housing for Wales grant redemption fund surpluses-1-1-1-2-1-1
160527 Housing for Wales redemption of grant following sale-1-1-2-3-4-3-1
160528 Housing for Wales—receipts other-3-5-4-3-5-8-6
160529 New housing revenue account subsidy179170210
160530 Housing for Wales—HAG on deferred interest8787884
161212 New towns capital expenditure-1-6
161301 Credit approvals14015111411484115154
Total housing210225203226486485625673697

Other environmenlal services

090400 Civil defence11111
160301 Promotion of tourism89910101114
160601 Ancient monuments and historic buildings— CADW577791012
160602 Central environmental services—cash limited666772330
160603 Central environmental services—non-cash limited29410333
160604 CADW grants to local authorities111
160607 Urban programme/urban development grant— current4455554
160609 Storm and flood damage21
160410 Urban programme/urban development grant— capital8768212926
160613 Grants for rural water services
160614 Gypsy sites grants11
160615 Clean air grants
160616 Land Authority for Wales-52111
160617 Urban regeneration grant234
160618 Council tax and rating111112
160619 National parks supplementary grant2333345
161214 New town capital expenditure1-14
161215 Urban development corporation111829333235
161301 Credit approvals65594260536046
Total environmental services98104104143152197194193199

Educational arts and libraries

160731 Schools2434567
160732 Access funds111
160733 Higher education22222345
160734 Further education2222225
160735 Youth service1111111
160736 Welsh language2223456
160737 Other educational services1123598
160738 Education support381112131415
160739 Bilingual education1111222
160748 Other specific grants
161301 Credit approvals (education)28394948505755
160801 National Library of Wales3444566
160802 National Museum of Wales891216161514
160803 Other arts and libraries11
161301 Credit approvals (arts and libraries)2312123
Total education and arts and libraries56769199107122168167168

Health and personal social services

160901 Hospitals and community health services7288078949621,0771,2321,363
160902 Other health services11111

1986–87

1987–88

1988–89

1989–90

1990–91

1991–92

1992–93

1993–94

1994–95

160904 Other centrally funded health19233039526881
160905 Personal social services1111233
160906 Family practitioners services administration5557101212
160907 Family practitioners services229254254305342368402
160908 Welfare food and EC medical costs7766767
160909 NHS contributions, cost of collection1111121
160911 Child care training, etc.112
160913 GP practice funds31010
161301 Credit approvals687691011
Total health and personal social services9951,1061,2281,3331,5011,7131,8921,9602,053

Departmental/Central Administration

161001 Departmental running costs34363843485560
161002 Contracted-out VAT refunds
161003 Central administration receipts-1-1-1-2-1-1
161004 Central administration capital2123223
161005 Other current expenditure
Total departmental/Central administration343639454955616466

Unhypothecated support to local authorities

160620 National non-domestic rate collection cost334
161302 Revenue support grant1,4111,2361,617
161303 Rate support grant5769501,0151,0494
161304 National non-domestic rate payments308338368414443525536
161312 Community charge grant26827
161305 Rate rebates to disabled people4467
161306 Rate rebates in enterprise zones3345
161307 Community charge transitional relief20
161311 Community charge reduction scheme6240
161312 Community charge rebilling and administration3
161314 Council tax preparation costs6
Total Unhypothecated Support to Local Authorities1,1931,2961,3921,4741,6082,1022,2302,3242,425

(b) Other Programmes

£ million

1986–87

1987–88

1988–89

1989–90

1990–91

1991–92

1992–93

1993–94

1994–95

Agriculture, Fisheries and Food

160101 Market support under CAP392238335482103
160102 National supplement to market support under CAP2224433
160104 Grants and lr j 7–2oans for capital and other improvements139889913
160105 Support for agriculture in special areas36353334354542
160106 Animal health
160107 Other agricultural and food services1111221
160108 Support for the fishing industry
160109 Support for the fishing industry and other fishery services
160110 Other agriculture and food—EC111
160111 Support—fishing industry EC1
160112 Compensation to sheep producers3111111
160114 Arterial drainage grants to LAs111
160115 Coast protection1112344
160116 Arterial drainage grants to WRA122
161301 Credit approvals2433345
Total Agriculture, Fisheries and Food99778687112154175185186

Industry

160201 Regional development grants8651572922205
160202 Regional selective assistance34344142356054
160206 Regional enterprise grants1222
160207 Other support services1
160208 Small firms measures1
160210 Careers strengthening scheme1122222
161201 Development Board for Rural Wales (DBRW)871010101213
161203 DBRW—housing subsidies2222233
161204 Welsh Development Agency35576669858976
161301 Credit approvals
Total—Industry167152178155158190166160164

1986–87

1987–88

1988–89

1989–90

1990–91

1991–92

1992–93

1993–94

1994–95

Nationalised Industries

161101 Welsh Water Authority External Finance Limits1717915

(ii) Identifiable General Government Expenditure

It is not possible to analyse the data shown in figure 1.03 of Cm 1916 in terms of the functional classifications used in the identifiable general Government expenditure tables which appear in appendix E of Cm 1920.

The main reason for this is that, for the local authority sector, general Government expenditure has a different coverage than the planning total (which underlies figure 1.03 of Cm 1916).

General Government expenditure measures the net expenditure of the local authority sector, including that which is financed from local authorities' own resources, such as income from the community charge and from capital receipts. The planning total covers those elements of local authority spending over which central government has controlߞgrants, non-domestic rate payments and credit approvals.

Whereas the net out-turn expenditure of local authorities is allocated across the various functions shown in appendix E of Cm 1920, it is not possible to do the same with several components of the planning total, such as revenue support grant.