Power to Prescribe Maximum Rates and Precepts

Part of Clause 1 – in the House of Commons at 7:45 pm on 27 March 1984.

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Photo of Mr Patrick Jenkin Mr Patrick Jenkin , Wanstead and Woodford 7:45, 27 March 1984

Perhaps the hon. Gentleman was not in the House when we mentioned that matter. We shall come to it tomorrow, when other amendments will be discussed and when I hope to catch your eye, Mr. Deputy Speaker, so that I can answer such questions.

I can go one stage further, as these matters are related to the problems of the low-spending authorities. If under the Bill we can begin to cap the spending of the irresponsible high spenders we shall be able to help the lower spenders. Of course, we are subject to overall spending constraints, but we shall increase the total provision for local authorities' current expenditure as new information on budgets becomes available, as we have done in recent years. It is our firm intention to stick to our overall plans for future years so that if yet again we have to increase the planning figures for local government current expenditure we shall have to achieve that within the overall planning totals in the White Paper published on 16 February.

I have constantly reaffirmed—the Government will live up to it—the undertaking that my hon. Friend the Under-Secretary and I gave in the rate support grant debate that, as the capping begins to take effect, we shall be able to take greater account of the efforts of low-spending authorities to keep their spending within the guidelines laid down by Parliament. If we are to do that effectively, we must have reasonable flexibility in interpreting part I.

I hope that I have explained to the satisfaction of my hon. Friends that it would unduly tie the Government's hands if we were pinned down to a figure such as 20, suggested in the amendment moved by my hon. Friend the Member for Devizes. Therefore, I hope that the House will reject the amendment.