| Previous Section | Index | Home Page |
Mr. Raynsford: The hon. Gentleman cannot have been listening to my speech. I made it absolutely clear that the Government are committed to a new relationship with local authorities and to dealing with many of the problems that he and other Opposition Members have highlighted. I have also made it clear that we inherited a financial settlement that came into operation a month before we were elected. We have made it quite clear that, this year, we shall be working within that financial framework. It would not be possible to make such a commitment to the electorate and then to renege on it without being subjected to criticism of being a party that does not honour its pledges to the electorate.
The Government clearly stated what we would do--that we would work within the financial framework that we inherited--and we are doing it. We are, however, simultaneously examining ways in which we can improve relationships between local and central Government and improve local government's future financial framework. We shall improve those relationships and that framework.
Should Somerset wish to challenge its cap, it will have 28 days from the date of designation--until 18 June--to propose an alternative amount and to provide its reasons for doing so. The authority will not only be able to submit its written case, but will have an opportunity to meet me or one of my colleagues to make its case directly. A meeting has provisionally been arranged--for 26 June 1997--with my hon. Friend the Minister of State, Department of the Environment, Transport and the Regions, who has responsibility for housing and local government. We shall consider all the relevant points, including those made in this debate, before reaching our final decision.
Final caps will be stated in an order, which is, of course, subject to approval by the House. Once that process is complete, we shall notify the authority of its maximum permitted budget. If a budget reduction is confirmed, the authority would have 21 days in which to calculate a substitute budget requirement. It would then, of course, have to set a reduced council tax.
Question put and agreed to.
12 Jun 1997 : Column 1343Adjourned accordingly at twenty-seven minutes past Seven o'clock.
| Index | Home Page |