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Mr. Kynoch: I should have thought that the hon. Gentleman would come up with something better than the old story of surpluses. Unfortunately, he is unable to understand the budget deficit between Scotland and the rest of the United Kingdom.
The Local Government Finance (Scotland) Order 1997 is accompanied by a report that sets out in detail the way in which the figures have been arrived at. It has been
subject to extensive consultation with the Convention of Scottish Local Authorities. I shall be happy to expand on any points of detail that hon. Members wish to raise.
The next order before us is the Revenue Support Grant (Scotland) Order 1997, which is also accompanied by an explanatory report. The figures have again been calculated on a basis agreed with COSLA. Overall, the order provides for the payment to local government of a net sum of £2.73 million.
The Special Grant Report (Scotland) on Supplementary Mismatch Scheme Grant for 1997-98 is the second such report. The proposed grant payments for 1997-98 ensure that the 10 councils will be protected for 50 per cent. of their mismatch. The report provides for the payment of special grant totalling £14.19 million next year, £6.97 million of which will go to Glasgow city council.
Lastly, hon. Members will see that we are also seeking their approval for the Special Grant Report (Scotland) on grant in aid of building works at Dunblane primary school and grant in aid of local authority revenue costs resulting from the Dunblane tragedy. We estimate that the first of those grants will amount to £2.091 million, and the second to £2.073 million. The report sets out how we have determined the amounts of grant that will be paid and their purpose. It is the product of close liaison with the council since the horrific events of last March. The report requires the formal approval of the House, which I hope it will obtain in a way that spares the community undue further attention.
So much for the detail of our proposals. I expect that, as in previous years, the overall local government finance settlement rather than the specifics of the orders and reports is likely to dominate the debate. We shall doubtless hear the usual, totally predictable complaints. Opposition Members, COSLA and virtually every local authority constantly complain that Scottish local government is underfunded, and that next year's settlement will require councils to cut expenditure.
It bears repeating as often as those claims are made that nothing could be further from the truth. Contrary to all the talk of cuts next year, next year's settlement allows every single council in Scotland to increase expenditure compared with the current year. It also bears repeating until the message has hit home that the overall settlement provides for an increase of more than £140 million, or 2.2 per cent., in local government expenditure. That is before any account is taken of the scope for efficiency savings.
At the same time, the level of Government support for that expenditure has been increased by more than £60 million, which is £46 million more than local government expected to receive, when it considered its planned expenditure for next year as outlined last year.
Mr. Michael J. Martin (Glasgow, Springburn):
The Minister has given local authorities, such as Glasgow city council, new burdens of additional expenditure for the police and for community care.
Mr. Kynoch:
The hon. Gentleman came to see me last Friday, with representatives of Glasgow city council. It was an interesting meeting, because Glasgow city council receives £21 million of mismatch funding, partly through
Glasgow has had a fair deal. When Councillor Gould came to see my right hon. Friend the Secretary of State last year and pleaded for some extra help to buy time to get his expenditure into line with revenue, Councillor Gould knew perfectly well what was going to happen to the funding of Glasgow city council this year. I give him credit for the fact that he seems to have been able to pay off a deficit this year. It appears that he seems, if what he says is right, to have managed to get his expenditure into line with budget, so I fail to understand why he is seeking to increase his budget now by more than 10 per cent.
Mrs. Maria Fyfe (Glasgow, Maryhill):
The Minister will recall the detailed discussion that Glasgow Members and city council representatives had with him on Friday. I am sure that, if he recalls that discussion, he will remember that, although there was a £9 million surplus this year, that still leaves the council with an £80 million deficit and having to sack up to 2,000 workers and cut services accordingly. Does he still think that Glasgow is trying to spend more money? It is struggling to avoid spending far less and wrecking services.
Mr. Kynoch:
The hon. Lady has not been listening to what I have said about Glasgow city council. My point is this. It appears that next year it is seeking to spend almost £100 million more than this year, but when I mentioned at the meeting some of the information that I had received as a result of asking Councillor Gould about his councillors' travel arrangements in the past year, I noticed that certain hon. Members rose very quickly to their feet.
The Secretary of State for Scotland (Mr. Michael Forsyth):
Rose.
Mr. Kynoch:
My right hon. Friend mentions the word "rose". That could lead me to give some of the details. Hon. Members heard me say that, when I looked through the analysis of councillors' visits to conferences and trips abroad, I found that two councillors went to Rostov-on-Don for the Rostov city days event--what that has to do with Glasgow I fail to understand--
Mr. Michael J. Martin:
Will the Minister give way?
Mr. Kynoch:
In a minute. I did not mention the hon. Gentleman, but I was referring to him, and I shall give way in just a minute, because he may be able to justify those trips, at a time when Glasgow city council is
Mr. Martin:
The Minister was referring to me and to the comments that I made. He should have been fair, because I invited him to have a debate on the Floor of the House about trips abroad, so that we could talk about some of the trips that Conservative Members go on, which are so strange that the Privileges Committee has had to examine them. I speak as a Member who has not been abroad in this Parliament. I say to the Minister: hold a debate, when we can talk about everyone's trips abroad. It is a scandal that the Privileges Committee has had to examine hon. Members who have brought shame on the House.
Mr. Kynoch:
I understand the hon. Gentleman trying to divert the debate from what I was talking about, which is what is going on in Glasgow city council, but it might interest him to know that I have made two trips abroad in the past 18 months. From one, I brought back 4,300 jobs after inward investment by Chunghwa Picture Tubes and, from the other, 500 jobs were created at the Lexmark company in Rosyth. I believe in spending money wisely, in the interests of my responsibilities. I find it difficult to understand the expenditure to which I referred, at a time when Glasgow city council is asking its electorate for a 22 per cent. increase in council tax and talking about cutting services.
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