I propose to take Questions Nos. 3 and 19 together. I have explained to the House on a number of occasions that I do not consider that it would be practicable or appropriate to attempt a redistribution of the rate support grant on a basis such as that recommended by the Institute for Fiscal Studies some years ago.
The present system of rate support grant allocations has evolved over a period of some 16 years. Adjustments to the system made over the years have generally been financially neutral for the local authorities. Where increased overall allocations have been made available in the Estimates for a particular year, the additional funds have generally been allocated on a pro rata basis among the local authorities.
Proposals for a new distribution system must take realistic account of the present allocations so as to ensure that no area suffers unnecessarily through disruption of important services. Any new basis of allocation must also take account of the particular difficulties experienced by some local authorities. Where imbalances may exist under existing arrangements, they did not come about overnight and it would be imprudent to try to solve them otherwise than on a phased basis, possibly over a number of years.
I will be taking account of factors such as the foregoing in settling the allocations for 1995 which I hope to be able to notify to local authorities shortly.