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Local Government Finance

Volume 225: debated on Thursday 27 May 1993

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To ask the Secretary of State for Scotland if he will take capping action against any Scottish local authority this year.

No. All Scottish local authorities, with the exception of Clydebank district council and Shetland Islands council, have set budgets for 1993–94 at or below the expenditure limits implied by the provisional capping principles which I announced on 12 November 1992. I made it clear subsequently that I would not cap Clydebank district council if it set a standstill budget. The council has satisfied this requirement. Shetland Islands council which, given its special circumstances particularly as regards its oil-related special funds, will fund only a very small proportion of its planned expenditure from its council tax which, at taxpayer level, is the lowest in Scotland. In he circumstances, I do not propose to cap the council.Overall, this is a very satisfactory outcome and again demonstrates the effectiveness of my capping powers in protecting local taxpayers from excessive spending by their councils. It is my intention to issue later this year provisional capping principles for 1994–95.